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To: Bob Howarth who wrote (825)9/18/1998 1:45:00 PM
From: Paul Shread  Read Replies (1) | Respond to of 14638
 
Bob,

Two points on Brazil:

Latin America has been through this before. They've made the reforms. They're in far better shape than Asia or Russia.

Yes, Brazil's currency is now overvalued by 10-30%, but they are the gem of emerging economies. The G-7 has drawn the line in the sand there. They will do whatever they can to keep them from devaluing.

They could fail, in which case I agree with you: a Brazilian devaluation would be devastating.

Paul