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Strategies & Market Trends : HONG KONG -- Ignore unavailable to you. Want to Upgrade?

To: Tom who wrote (2183)	8/27/1998 9:43:00 PM
From: Dayuhan	Read Replies (2) \| Respond to of 2951

Tom, An odd train of thought is running around my head this morning, and I wonder if it rings any bells elsewhere. A consensus seems to have emerged that the Chinese defense of their currencies is linked to the defense of the HK dollar. All seem to agree that the breaking of this wall will have major ramifications, largely negative, for Asia and by extension the world. Now we have a small group of fund managers who have for all intents and purposes announced publicly that they intend to break the peg, and make a lot of money in the process. Not that the peg might not dissolve in any event, under natural market forces. But a deliberate attempt to destroy it seems perilously close to terrorism. At what point does it become legitimate to start putting cruise missiles in lower Manhattan? I'm not sure I'd object. Steve

To: Tom who wrote (2183)	8/27/1998 11:16:00 PM
From: Dayuhan	Read Replies (3) \| Respond to of 2951

Tom, Just reading a number of analyses claiming that the Russian collapse will have minimal effects on corporate earnings. Something seems to be missing. Isn't the real impact going to be on commodity prices? Reduction of Russian demand is going to leave huge surpluses of grain and sugar, among other things, and a Russia starved for dollars is going to pump oil and dig gold regardless of price. Isn't this going to be another significant deflationary pressure? Or am I just raving in the wind? Steve