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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Abner Hosmer who wrote (5923)	1/14/1998 11:30:00 PM
From: Gabriela Neri	Read Replies (1) \| Respond to of 116764

He was behind the curve way before the Asian crisis hit. At least, if you measure it in accordance with historical precedence. Nontheless, he will stay behind the curve for the time being or risk being singled out by every member of the US congress for being solely responsible for the crash of 1998 if he raises rates and the market tanks shortly thereafter. No way he raises, fundamentals will not matter. Its a political thing at this point. With regard to lowering rates, only if the Asian crisis becomes a real threat to global economic stability and world trade. I mean a real threat, not a perceived threat. And this real threat will be known by him before it is known to most of us. My opinion is that there will be a coordinated policy initiative on behalf of the G-7 to contain this crisis should it careen out of control too much. And that response may include coordinated interest rate cuts globally-because to do so alone would be a waste of time and effort and result in a failed policy response. In this way they could inject liquidity into the global system and not have it unduly favor the US dollar. However, I dont think we are at that point yet and would not bet that we get there. Nonetheless, it is a risk.