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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (13909)	2/7/1998 11:20:00 PM
From: Investor2	Respond to of 18056

RE: "... if the Asian flue and their devaluations are not stopped. If our trade deficits goes much above this figure, I am afraid that the dollar will weaken drastically, and to prevent that, the fed might start and tighten here again..." I agree that devaluation of foreign currencies could very well result in more U.S. imports and less exports, thus increasing the trade deficit. As foreign goods become cheaper, U.S. goods must also get cheaper or the American people will just buy the foreign goods. U.S. companies and people will find a way to compete with the lower prices or will be forced into layoffs and business closures. Best wishes, I2