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Strategies & Market Trends : Telebras (TBH) & Brazil -- Ignore unavailable to you. Want to Upgrade?

To: DMaA who wrote (1469)	4/6/1998 5:18:00 PM
From: Steve Fancy	Read Replies (4) \| Respond to of 22640

I hear ya...just noticed Globex June S&P 500 futures are trading down 8 1/2 points! Low volume so far though. Was impressed that TBR was the 3rd most actively traded stock on NYSE last year. sf

To: DMaA who wrote (1469)	4/6/1998 11:08:00 PM
From: TOPSID877	Respond to of 22640

Norio Ohga was engaging in STATEGIC HYPERBOLE. After stating that "the Japanese economy is on the verge of collapsing", he recommended solutions to ward off the impending "collapse": Reduce the rice rations? Call out troops to quell riots? Have more Japanese children sell plums (more available than apples) in the streets? Well not quite. Ohga urged the government to pass more measures to help boost consumer demand, especially "we need to do away with taxes related to purchasing a home, even if only for the short term". A short term tax break for new home buyers is the main vehicle to stop a total economic collapse??! Ohga (and others) were using hyperbolic descriptions of real problems in the Japanese economy to lobby for desired economic measures. People in this country do likewise. Other "horrible" Japanese news from last week had the same overdone tinge to it: Moody's announced that it "may downgrade" the top AAA rating on Japanese government debt--not yet, but maybe some day; Japan's business leaders reacted as if the debt HAD been downgraded. There was more, but you get the idea. The best argument that the "Japan crisis" was woefully overwrought is the absence of any real effect on U.S. domestic equities. It is not taken that seriously by investors in domestic stocks. Unfortunately, Brazil and Brazilian stocks overreact to negative Asia news. But when the U.S. markets do not respond in tangent, the fear among holders of Brazilian stocks should abate. Actually, it looks like this may already be happening.