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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?


To: Derrick P. who wrote (6366)9/12/1998 5:08:00 PM
From: Ron Bower  Respond to of 9980
 
Derrick,

"A weaker dollar by itself is not enough. This would tend to reduce demand for foreign goods in the US. It must be coupled with an interest rate decrease. This will tend to stimulate the economy, increase demand, and ease pressures on foreign currencies and debt payments. I agree with Zeev that the Fed will probably not ease until the US stock market is lower."

I agree with all the above. The problem I see is the market not getting low enough because of capital flight out of the emerging markets to the US. This becomes a Catch 22.

JMHO,
Ron