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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Richard J. Byrd who wrote (10376)	11/25/1997 1:11:00 AM
From: Staff	Read Replies (1) \| Respond to of 94695

Well Japan's government is going to loan them the dough now claiming the justification based on the criteria that: >> >>unsecured loans to financial institutions whose insolvency is deemed a threat to the stability of the nation's financial system.<< Or as Slick called it today.. a "glitch". Sombody tell our President that "glitches don't threaten the stability of a nation's financial system. There was intervention tonight early in the S&P's when the market continued to drop a few hundred points from NY's close. The intervened anfd rose the market above the NY close to add some stabliltiy. Now that Japan is winding down the selling seems to be reentering the market. Since the night markets are much thinner, it takes less funds to influence this market. As in the currency,( where this gov. intervention is a common accurance) , traders just step aside and let them bid the market up. This is why it's rising on literally no volume. When they stop, the traders will just hammer it again without some new influx of positive news.. Should see a few nice swings tonight. Things are not doing well this evening. Everyones focus is on Japan whose Nikkei 225 was off over 5%. More critical is that they just hammered the Yen in the last hour. Rumors are about that Japan may begin taking somey out the US bond and bill markets and bring it back home. Rumor has it that the US is willing to borrow Japan moeny not to do it. We are thus going to borrow Japan money so that they won't take back money they are borrowing our government when they purchased out bonds and bills. Sounds like sound fiscal policy to me :-) So much for those that bought the dip in the Nikkei a few days ago on everyones assurance there was nothing to worry about. Wounder if they will be announcing a big refund for everyone that got burned buying the dip last week. Hmmmmm... what do you think! I'll beleive it when I see Clinton buying that Fidelity Asian fund big time. More importantly in my view South Korea is now off again over 7%. This after receiveing hitting a 10 year low yesterday and receiving a 20 billion bailout package. Heard that those close to the situation that word has it the 20 billion is no where near going to be enough. Could take 30 to 40 before it's over and they are estimating 1 1/2 to 2 years before a turn around. It's only a glitch.... but ....I'm taking my board out on the waves just in case if the big Kahuna is just starting to build steam:-) PS. Remember... these ecconomies are actually fundamentally very sound... yeah! sure!... thats why everything is moving along so smooth. Almost... without a glitch :-)

To: Richard J. Byrd who wrote (10376)	11/25/1997 7:18:00 AM
From: Jack Clarke	Read Replies (1) \| Respond to of 94695

Dick: If providing liquidity (taxpayers' money, directly or indirectly through currency debasement) isn't intervention, what is? My feeling is that free markets ought to be free. If people and institutions are dumb enough to create and participate in tulipmania or our own current stock market bubble, they should bear the pain when the bubble pops. Otherwise, the prudent and conservative people pay for the mistakes (and profits) of the rash and imprudent. My point is that our politicians should be leaders and not let the foolhardy get the whole country into such a position, just to let the good times roll (temporarily) and keep themselves in power. Am I being cynical? Jack