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

To: RockyBalboa who wrote (7331)	9/1/1998 1:27:00 AM
From: djane	Read Replies (1) \| Respond to of 22640

Christian, with respect, your comment is just wrong. As you will see tomorrow morning, corporate stock buybacks in the US are very common when their stock prices are undervalued during times of panic. Since Telebras is partly privatized and partly govt owned, it is appropriate for the govt to intervene at a minimal level to stabilize things. Societies have a basic need for some semblance of stability, not pure chaos or anarchy. Do you also oppose intervention in the currency markets (done by all govts on the planet) to curb excesses? Pure free market theory sounds good but it doesn't work in practice -- hence currency boards, etc. in emerging markets. In addition, the brain-dead Hong Kong and Malaysian regimes have pursued futile, failed policies of targeting and punishing hedge funds and speculators, not to stabilize their markets in times of panic. The Brazilian authorities seem to have learned from the late 10/97 panic and, to my mind, have been making all the right moves.

To: RockyBalboa who wrote (7331)	9/1/1998 8:10:00 AM
From: John Soileau	Read Replies (1) \| Respond to of 22640

Actually intervention on Wall Street by the Fed, through proxies,likely DID occur during the 1987 October crash. They obviously didn't want this publicized, but the evidence is quite compelling. Fortune wrote about this a while back, and there is a book out on the 87 crash (title escaspes me) that goes into the intervention in detail. What was recounted was that one or more Fed reps coordinated heavy buying of key securities by private bankers, with the tacit understanding that the Fed would stand behind them on those trades. It worked--the turnaround in a few bellwether securities (I think GE was one?) stemmed the panic. So Hong Kong and Brazil may actually have been inspired by their uncle in North America when they decided to intervene in their stock markets. John