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To: John Barendrecht who wrote (18453)	9/11/1998 3:37:00 AM
From: Alex	Read Replies (1) \| Respond to of 116764

Howdy stranger : - ). Good to see you back.................. SCANDAL TREMOR: FOREIGNERS FLEE U.S. MARKETS By JOHN CRUDELE ------------------------------------------------------------------------ SUDDENLY, America isn't looking very safe to foreign investors. Over the last few days, the U.S. dollar has fallen sharply against the Japanese yen and has plummeted in relationship to the German mark in a sign that President Clinton's problems are starting to unnerve foreign investors. And while investors aren't yet flooding back into the yen because of Japan's massive financial problems, the German currency and gold - up 10 percent in September - seem to be the newest havens for investors. None of this is totally unexpected. But it is surprising that the change in investment strategy by foreigners is happening when so little of Clinton's troubles have been revealed to the public. And it raises the question of just how serious the White House scandals might turn out for the U.S. financial markets once the dirt is really hurled. Whenever there are signs of political or financial unrest, investors around the world tend to seek safer ground. And with all markets as liquid and as interconnected as they are, the moves are swift and sometimes shocking. This is exactly what has been happening for the past few months, for instance, as Japanese and other Asian investors abandoned their own markets and safeguarded their assets in U.S. government securities. But what is particularly surprising is that anyone at this time would find Japan, with all of its massive financial problems, a more attractive investment climate than the United States. Yesterday the dollar was selling for around 134 yen, down from a recent high of more than 147 yen. The U.S. currency has fallen more than 3 yen in just the last two days. A lot happened in the U.S. over the last 48 hours, of course. But keep in mind that the dollar's slump is coming against the currency of a country that is in perhaps the worst financial shape of any developed nation in the world. And a lot has happened in Japan in those same 48 hours. Tokyo, of course, cut interest rates this week in a move that should have hurt its currency. Without that rate cut, the yen would have been even stronger against the dollar. The dollar's weakness could be made even worse if Fed Chairman Alan Greenspan follows through on the interest rate cut he hinted at earlier this week. In fact, as I said before, the dollar's weakness might be the one thing that keeps Greenspan from delivering a market-boosting rate reduction. Even though the dollar is still well off its lows of recent years, the main concern of the Fed has to be the currency's downward trend. If the dollar falls too quickly, it will force foreigners to repatriate their money - which will cause the greenback to fall some more. And the only way for foreigners to redeem their dollars is to sell dollar-backed securities, mainly U.S. Treasuries. If Treasury securities are sold en masse by foreigners it will cause interest rates here to rise. The end result of all this could be a lower currency AND higher interest rates - a combination that is never good but particularly bad when the government is preoccupied by scandals. So far, however, bonds have been soaring in price. But in combination with the dollar's weakness, this would indicate that American investors - not foreigners - have been liquidating stock holdings and buying bonds. If this continues, the bond market's gains will come at the expense of stocks. Yesterday was an example of that as bond prices rose sharply while the Dow declined nearly 250 points. All of these trends are even more worrisome if you believe, as I do, that the impeachment of Bill Clinton will be a long but inevitable process. Little of what Ken Starr has uncovered will be disclosed in the next few days. Most will be saved for the bigger report to be carried to a three-judge panel at some later date. The dollar is in trouble.

To: John Barendrecht who wrote (18453)	9/11/1998 4:48:00 AM
From: Bobby Yellin	Read Replies (1) \| Respond to of 116764

real estate in NYC is driving out small businesses for huge chain stores..NYCers with cars shop for groceries outside Manhattan. The rents and prices are bizarre..the only good news is that there has been so much renovation that the side streets have become beautiful.(and real estate brokers have made a fortune along with people who are selling at the highs)..it is amazing how many people I see now smoking on the street..especially younger people whose jobs and paying the rent must be quite stressful..expensive restaurants are probably doing great..many other restaurants aren't doing so well.. a lot of people must be apartment poor..two wage earners for the most part are needed to pay the rents or coop or condo fees.. the bubble is probably greater than the last bubble..the only difference is Japanese aren't buying this time.. I think your 20 percent number is quite low..as for people lying..can't imagine what that percentage is.. if one were to compare clinton to JFK for instance,would he look like a choirboy? As for Charters,I wish he would just keep to gold. As to this thread,I find it bizarre..deflation is being mentioned everywhere now..the most bullish case for gold imaginable and currently gold seems to be of diminished interest now on the thread.. The irony ......