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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?


To: Raj who wrote (19220)8/11/1998 8:44:00 PM
From: James Strauss  Respond to of 50167
 
Raj:

I haven't been able to connect to SI for two days... Sorry for the delayed response...

The YEN seems to be at the heart of world market jitters... Throw in a little Russian market meltdown and you've really got something there... I imagine there will be some attempt to prop up the Yen... Its effects will only be temporary because artificial monetary manipulation during a crisis doesn't get at the root of why there is a crisis... It won't revalue the real estate that is carried on the books of banks, as collateral for loans, at inflated values... It won't prevent the eventual collapse of many banks that are way over leveraged with negative book values... A row of dominoes is now in a precarious position of starting a negative financial chain reaction where the countries of the world are the dominoes...

Jim