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To: FUZFO who wrote (21254)	9/6/1998 11:30:00 PM
From: joe	Respond to of 45548

Fuz, >>What came first the chicken or the egg? This guy is going to tell us that money is going to flow FROM the US TO ASIA??!!!! because of OUR market conditions???!! Jeeeeeez, when does the cycle end?<< It's complicated as heck. Here's the reasoning, though. Before, our markets were hurting because of Asia. But since July we have taken a much bigger whipping - 1700pts on the DOW. Last October, we didn't even have a 10% correction. Now we're just short of a 20% correction, which is the technical definition of a BEAR market. So, when the other countries around the world thought we were a safe-haven for their $$ since last October, they have had second thoughts during the month of August. As a result, people in Asia and HK have decided they might as well keep a few more of their $$ in their own country...no place is completely safe anymore. And, the more US $$ that HK keeps in it's own country, the safer they are against currency speculators. Currency speculators are HK's biggest problem...because of them, they have to keep their interest rates up very high.... Basically, all the world's problems have made the US Dollar too strong and it's shooting us in the foot. That's why the prospect of Greenspan lowering rates is good news. It's the same as weakening the dollar, which will mean that other countries will have more of their own money to fix their problems AND they can start buying our exports again. With the US $ too strong, we can't sell anything to anybody. Interesting you mentioned all this. Just the fact that Greenspan has thought of this is enough to change market conditions all over the world. He hasn't said he's going to do anything yet. It will be very interesting to see how this plays out in Asia. Don't want to be too optimistic, but it could be a very big boost. joe