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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Paul Berliner who wrote (545)	9/2/1998 11:29:00 PM
From: Alias Shrugged	Read Replies (2) \| Respond to of 3536

So how does this get resolved? Maybe by screwing around, Japan doesn't need to pay the full price of their follies, and spreads the cost to the other Global players who are inextricably linked to them via derivitives, etc. We already are seeing some of the US banks taking their licks. Seems like we are in a winner-takes-all currency poker game, where all the chips seem to be piling up in front of Uncle Sam. How soon until one of the players jumps up from the table, draws their six-shooter, and.... Actually, in my own feeble understanding, I see a massive destruction of capital in Japan, Korea, etc. The impact of this is slowly working its way around to the US. We cannot avoid it, as our stock market valuation was based on economically viable trading partners. As these markets shrivel, so will US Corporate profits and stock valuations. Japan's desire to avoid taking the hit will ultimately increase the size of the problem and the price all of us will pay. All paper assets (including US dollar) seem destined for declines. Mike