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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: James F. Hopkins who wrote (24489)	8/17/1998 10:38:00 AM
From: Moominoid	Respond to of 94695

Tippet; Letting it "float" is not the same as devaluating it, The Ruble is floating within a band anyway. What they did was lower the lower bound of the band. The ruble immeditely fell down but only part of the way it can now float to. This is exactly what happened just before the Sterling was expelled from the European Monetary mechanism - the bands were widened, the pound sunk, the Bank of England raised interest rates and then capitulated. Soros shows up in both cases. PS they also called a debt moratorium on some foreign debt. This could have an impact on German banks?

To: James F. Hopkins who wrote (24489)	8/17/1998 10:44:00 AM
From: yard_man	Read Replies (1) \| Respond to of 94695

NPR used the term devalue -- guess they got it wrong they also said that Germany had exposure to ruble denominated assets and that the DAX was off as a result I have read that Germany has some real exposure to ruble denominated assets enough that I do believe that. This will impact their market.

To: James F. Hopkins who wrote (24489)	8/17/1998 10:45:00 AM
From: yard_man	Read Replies (1) \| Respond to of 94695

Practically speaking -- float or devalue -- so what? Their currency will go down promptly relative to other currencies. Difference of the appearance of control only, no?

To: James F. Hopkins who wrote (24489)	8/17/1998 10:46:00 AM
From: Philipp	Respond to of 94695

Jim: Letting it "float" is not the same as devaluating it, And I can't see Germany trading lower because of that, Germany was down 2 %, not so much because of the devaluation but because of the moratorium on loan repayments. German banks will have the most too lose. Actually it is really the German people, since a large fraction of the loans are guaranteed by the government. Deutsche Bank has already put aside reserves of 60c on each dollar of loans not guaranteed by the government. To the EWTers: Does this look as if 1 of 5 is over now? The bottom buried in Globex trading? SPX above 1073, OEX above 528? These were, as I remember, levels that would negate a big drop. Just a conundrum: if everybody expects a big rally after a big drop, would it not be wiser for the market not to drop in the first place? Cheers and good trading. Phil