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

To: Bosco who wrote (2280)	9/2/1998 11:30:00 AM
From: Tom	Respond to of 2951

Excellent point, Bosco. Thank you for making it.

To: Bosco who wrote (2280)	9/2/1998 12:18:00 PM
From: tom	Read Replies (1) \| Respond to of 2951

The more money speculators lose in HK the better as far as I'm concerned. Boosting margins requirements on futures and pumping liquidity into the market are legitimate measures to take in this type of situation. Currency board purists would argue that injecting liquidity into the system is against the rules but who's counting? In the crash of 1987, Alan Greenspan did cut rates to try and stem the decline of the stock market. There is no evidence that the Fed has at any time bought S&P futures or has in any way supported the equity market by buying it directly. It certainly has never owned 8% of AT&T . We must remember that this is not all about hedge funds. The HK market was falling very nicely all by itself before people started blaming hedge funds as the cause of it all. Prices have to fall to restore equilibrium to HK. It's as simple as that. This process is very, very painful as it involves bankruptcies and high unemployment and general misery. The HKMA are quite naturally trying to delay the inevitable but they are finding out it is a difficult thing to do.