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To: Paul Fiondella who wrote (43156)	12/24/1997 12:09:00 AM
From: Tunica Albuginea	Read Replies (2) \| Respond to of 186894

Paul Fiondella,I have been forced to re evaluate my INTC investment in view of Asian meltdown.Sold all my poition this am; I sold 90%of all my stock positions at noon today.Main reason was the Nikkei index graph in the Wall Street Jour today in the International Section: it is heading straight down at a 30 degree angle within touchdown from it's 1987 crash lows ~ 14500 ( high of 32000 !! ). I see no hope because according to WSJ : _ US Congress ( Democrats/D.Gephardt, will not antre up money to bail out the UAW's competitoprs). _ Korean debt, > 200 Bill: IMF loan o n l y 57 bill !!. _Japanese Government, " p a r a l y z e d ". _J apan Banks will start selling treasuries to pay debt as their stock holdings' values dwindle;this will drive our interest rates up. I am poating the latest news tonight starting from this : World Markets: South Korea Falls 2.6%; Tokyo, Hong Kong Also Weak NEW YORK -(Dow Jones)- South Korean share prices narrowed their losses, but were still almost 3% lower at midday Wednesday, with the key stock index recovering on a rise in the Korean currency, the won, against the U.S. dollar, analysts said. Elsewhere, Tokyo stocks were lower at midday following the failure of midsize Japanese brokerage house Maruso Securities Co. Tuesday. The dollar was higher in Asian trading. Hong Kong stocks opened lower, dragged down by steep looses in regional markets and on Wall Street. Seoul's Korea Composite Stock Price index was down 9.39 points, or 2.6%, to close the morning session at 356.97. Tuesday, the index plunged 29.70 points, or 8%. Trading was active with 53.1 million shares changing hands. However, losers still overwhelmed winners 7 to 1. The market was also being weighed down by continued fallout from downgrades of the country's debt ratings and the exit of institutional investors out of stocks into bonds as the interest rate on three-year corporate bonds continued to rise. In Seoul, the South Korean won strengthened to 1,835 won against the dollar, compared with 1,962 won at Tuesday's close. The won plunged 14% Tuesday, closing at an all-time low. In Japan, the blue-chip Nikkei 225 stock index was down 8.99 points, or 0.06%, at 14790.41. Japanese financial markets were closed for a holiday Tuesday; the Nikkei fell 515.49 points Monday. Maruso Securities filed a petition Tuesday with the Tokyo District Court for permission to start voluntary bankruptcy proceedings after it failed to improve its loss-ridden financial situation. The Tokyo-based brokerage said it collapsed under the weight of 44.5 billion yen in liabilities. Japan's securities industry has been rocked by a string of collapses since the beginning of November, including Yamaichi Securities Co. and Sanyo Securities Co. Maruso is the fifth brokerage house to collapse this year. Investors also fear Japan, reeling from its own financial difficulties, could be pulled down even further by South Korea's troubles. In Asian midday trading, the dollar was at 129.91 yen, up from 129.29 yen late Tuesday in New York. The U.S. currency also was trading at 1.7750 marks, up from 1.7745 marks late Tuesday in New York. After 10 minutes in Hong Kong, the blue-chip Hang Seng index was down 79.38 points at 10288.72 after Tuesday's 195.63-point gain. Hong Kong financial markets are closed Thursday and Friday for Christmas. Tuesday on Wall Street, the Dow Jones Jones Industrial Average closed down 127.54 points, or 1.6%, at 7691.77. The bulk of the downturn in stocks came in the final fifteen minutes of trading amid a bout of profit-taking. Tuesday, shares in Brazil closed modestly higher, with the Sao Paulo Stock Exchange's Bovespa index rising 60 points, or 0.6%, to close at 9554 points. "Things were very calm, which was exactly what we had expected," said one Sao Paulo trader, noting that there has been a complete lack of domestic market-moving news over the past week. Mexico City's IPC index closed down 0.1%, or 5.68 points, at 4925.89. A last-hour plunge in New York stocks counteracted a positive reaction to Mexican inflation figures and pulled Mexican stocks below break-even at the close. In Europe, London's FT-SE 100 index rose 31.6 points, or 0.6%, to close at 5049.8 after slipping 2.0 points on Monday. Provisional volume for the market was 517.7 million shares. Dealers noted the London market suffered from quiet trading as investors wrap up business ahead of the Christmas and New Year holidays. In Paris, the CAC-40 index slipped 11.60 points, or 0.4%, to close at 2858.13, after rising 1.7% Monday. French stocks couldn't shrug off the 7.5% plunge in South Korea's bellwether index, traders said. The dollar's two-and-half centime drop against the franc thwarted any attempt at a rally. In Frankfurt, the blue-chip DAX index ended floor trading up 78.77 points, or 1.9%, at 4121.79 after Monday's 1% decline. German shares were boosted by a steady dollar and Monday's gains on Wall Street. Trading volumes were thin ahead of the long Christmas holiday, as most market participants have already closed their books for the year. TA -

To: Paul Fiondella who wrote (43156)	12/24/1997 12:12:00 AM
From: Tunica Albuginea	Read Replies (1) \| Respond to of 186894

Paul Fiondella, Asia meltdown No 2: .S. Mulls $5 Billion Loan To Seoul; World Bank Frees Up $3 Billion WASHINGTON -(Dow Jones)- The U.S. is considering the actual use of the so-called second-line of credit to South Korea as signs of market confidence continue to wane at the same time Seoul appears increasingly willing to move rapidly on reforms, an international monetary source said Tuesday. Meanwhile, the World Bank moved Tuesday to approve an emergency $3 billion loan to South Korea as the financial turmoil in Asia deepened over worries about the possibility of broader based loan defaults among troubled private and public debtors. A World Bank spokesman underscored the institution's commitment to bolstering Asian generally at a time of crisis, and to Korea specifically. But he also underscored at a press conference called to review the unusually rapid disbursement to Korea that the bank isn't going to serve as the financial fireman of Asia. The World Bank's action came as fears grew Tuesday that South Korea's economy is on the verge of collapse following media reports that the country's foreign debts now total a whopping $200 billion and comments by President-elect Kim Dae Jung that his nation faces the risk of default within two days unless international donors provided immediate aid. The senior monetary official, speaking on condition of anonymity, said while he doesn't necessarily expect the U.S. to move immediately to unleash its $5 billion pledge to Korea, there has been movement toward that step. A spokesman at Kim's National Congress for New Politics denied the report. The World Bank's $3 billion outlay represented the first from a $10 billion pledge to South Korea. The credit is part of a $35 billion package of multilateral credits from the International Monetary, the World Bank and the Asian Development Bank that forms the backbone of the $57 billion support effort for Korea. The other countries pledging the remaining $22 billion line of credit would likely follow the U.S.'s lead, according to the official. "The U.S. has become more interested in deciding whether the second line needs to be activated," the international monetary official said, adding that currently that doesn't necessarily mean the credit will be unleashed. So far, the IMF has disbursed $9 billion to Korea and at least another $2 billion will be coming on Jan. 8, according to the current schedule. The Asian Development Bank is also providing front-line funding to Korea, and Japan's central bank has recently approved a $5 billion credit line to its Korean counterpart amid continued pressure on Korea's official reserves. South Korean government officials, although acknowledging that foreign-debt obligations have grown since September, denied they are anywhere near $200 billion. And Kim's party said his comments were misinterpreted. Nevertheless, South Korean financial markets were roiled by the reports, as well as by news that Moody's Investors Service and Standard & Poor's had cut Korea's long-term foreign currency rating to "junk" levels. The South Korean won plunged 12.5% Tuesday to an all-time low of 1,962 won to the dollar, compared with 1,715 won to the dollar Monday. The key stock market index plunged 8%, or 29.70 points, to finish at 366.36. Interest rates, measured by yields on three-year corporate bonds, rose 1.11 percentage points to an all-time high of 31.11%. Kim, who will take office Feb. 25, told party members Monday that he was astonished by the gravity of the country's financial woes after examining its financial books. "I can hardly sleep after hearing reports (from economic ministers) .... We may go bankrupt tomorrow or the day after tomorrow," Kim said at the meeting, according to a report in the influential daily Chosun Ilbo. "Without emergency (foreign-currency) injection from foreign countries, the economy will be ruined," the newspaper quoted him as saying. Observers now question whether the $57 billion bailout package will be enough to stem the financial crisis. Kim's party called the foreign media's interpretation of his comments a misunderstanding, saying the newly elected president was using a Korean figure of speech to emphasize the gravity of the country's financial crisis, not indicating that a national default is imminent. Meanwhile, the local press quoted Deputy Finance and Economy Minister Kang Man-soo as saying loans to local financial institutions from overseas branches now totals $67.8 billion, and borrowing by local companies overseas totals $40 billion. Including those two figures, the country's total foreign-debt obligations surpass $200 billion, which is much higher than the $119.6 billion estimated in September, the local press said. The government also denied those reports, saying that although total debts may have edged up from September, "the total figure in no way adds up to $200 billion." Nevertheless, the press reports combined with the ratings downgrades intensified fears that the government will be forced to declare a moratorium on foreign-debt repayments, analysts said. S&P late Monday lowered South Korea's long-term foreign currency rating by a stunning four notches to single-B-plus, from triple-B-minus. The new credit rating leaves South Korea several steps into S&P's speculative grade ratings, and puts the country on an equivalent rating with countries like Pakistan, the Dominican Republic and Venezuela. At the same time, Moody's downgraded South Korea's foreign-currency country ceiling for bonds to Ba1 from Baa2 and the foreign currency ceiling for bank deposits to B1 from Ba2. The downgrades will make it tougher for foreign banks to roll over short-term credits placed with South Korean institutions. "A lot of banks are now cutting off credit lines to Korean companies so the situation is getting pretty serious," said a head of research at a large foreign bank in Singapore. "There is more than a 50% chance now that Korea may have to declare a moratorium. Three months ago that was unthinkable, but now it's not unthinkable," he said. There are serious doubts that South Korea's usable foreign-currency reserves, which stood at $10 billion on Dec. 11 but are estimated to have dwindled since then, will cover the country's short-term obligations even with funds from multilateral donors such as the IMF. South Korea's short-term foreign debts due this year are estimated at around $15 billion. Even if the nation manages to meet its obligations this year, economists say South Korea will have to play an exhausting game of catch-up to cover maturing short-term foreign liabilities into 1998. TA

To: Paul Fiondella who wrote (43156)	12/24/1997 8:49:00 AM
From: Road Walker	Read Replies (2) \| Respond to of 186894

Paul, All, re: Who THEY are If there is anyone out there left that thinks the markets arn't subject to manipulation, that they are controled by individuals buying and selling at the most logical price, all they need to do is look at yesterdays Dow chart to change their minds. I have to admitt that I think there is something un-ethical about this type of trading, and at the least there should be full exposure of who did what at 3:35 that caused the market to drop 90 points. This is not what the markets are supposed to be about, it is akin to a fixed horse race. I actually made money on the move as my put stocks took it on the chin, but still I am disturbed. I know this is not new news, happens every day, it just got my goat yesterday. I'll get off my soap box now. John