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

To: Raj who wrote (19394)	8/19/1998 2:57:00 AM
From: IQBAL LATIF	Read Replies (3) \| Respond to of 50167

HK-- did support the equity and currency markets punishing a lot of short funds- in opinion of media breaking of a solemn contract of non-intervention has left HK monetary authority weaker. I tend to disagree with WSJ on this issue, sometime speculators due to share power of leverage are able to extort much bigger disproportionate profits and mete out uneven punishment to markets, much as I believe in free markets I would like this game to be two way the defending authorities should have level playing field and ability to hurt the speculators so that extreme excesses are averted, the fine check and control balance can only be maintained if these painful blows are dealt with lethal accuracy like HK did, but it requires strict adherence to structural adjustments which would remove the anamolies in the markets. The media wants authorities hands to be tied up in this cyber world, however countries like China or HK who happen to have second largest reserves after Japan would like and should restraint excessive speculation. If they make a right judgement we would see reduced volatility but if these judgements are wrong they would go thru higher pain like Malyasia realised to its peril. Yen weakness to 135-38 area would help every one even US companies like HWP will be able to boast a profit higher than expected as strong $ results in higher translation, I think 135-38 area is good enough a area for developing economies and Us, however that would dent Japan export oriented bail package, but Japan better goes for domestic demand than relying on such short term measures.