Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Dennis J Baltz who wrote (66235)	9/19/1998 4:17:00 PM
From: stock bull	Respond to of 176387

Dennis, I hope you are right about Monday, and that I am wrong. We'll see very soon. Stock Bull

To: Dennis J Baltz who wrote (66235)	9/19/1998 7:02:00 PM
From: Jorge	Respond to of 176387

Dennis...a clip from CBS MarketWatch about yesterday's Japanese banking meeting that adjourned, while breaking weeks of deadlock.......Note, there is still skepticism on the actual outcome of stated objectives, as there typically are with Japanese initiatives...This wait and see caution will weigh on professional fund managers minds.........George **************************************** Last-minute economic deal in Tokyo? Japanese legislators break deadlock Compiled by CBS MarketWatch Last Update: 1:43 PM ET Sep 19, 1998 TOKYO -- Ending weeks of bitter deadlock, Japan's governing party declared Friday night that it had reached agreement with the political opposition on how to bolster the jittery financial system and begin reviving the ailing economy. The last-minute deal appeared to be sketchy, however, glossing over crucial questions, and it could fall apart. ********************************************

To: Dennis J Baltz who wrote (66235)	9/19/1998 7:36:00 PM
From: Jorge	Read Replies (1) \| Respond to of 176387

Dennis...Another overall article regarding current Market situations/concerns:......notice toward the end of the article the part about interest rates not being a panacea...Good article, in that it shows there are going to have to be multi-playered involvement in solving world's economic crisis.....Until there is more certainty caution is advised..........George ******************************************* Don't expect the cavalry to ride in By Rex Nutting, CBS MarketWatch Last Update: 7:49 PM ET Sep 18, 1998 See Washington schedule WASHINGTON (CBS.MW) -- It may take several more disappointments in the next 10 days before investors really learn the lesson that saving global capitalism will take a long time. The markets are looking for quick action by the Group of Seven or the U.S. Federal Reserve, but "no cavalry is going to come charging across the horizon," said John Ryding, senior economist at Bear Stearns. In the past week, waves of optimism and then pessimism washed over Wall Street. Investors became convinced first that policy-makers would solve the global downturn with a quick, coordinated interest-rate cut and a massive bailout for Latin America. But the reality hit home on Wednesday when Fed Chairman Alan Greenspan said the top industrialized nations' central bankers had no intention of getting together to ease monetary policy and Treasury Secretary Robert Rubin called a bailout for Brazil premature. (See related story.) Great expectations In the coming week or two, markets will be expecting great things from their leaders once again. They want Japan to deliver on banking reform and market-opening moves. They want the International Monetary Fund, the U.S. Treasury and Wall Street to put together a plan that arrests the capital flight out of Brazil. And, above all, they want the Fed to lower interest rates on Sept. 29. "I doubt that there'll be any resolution of anything," said David Wyss, economic research director at DRI/McGraw Hill. Although policy-makers in Washington, Tokyo, Berlin and London may agree generally on what must be done, they can't agree on how it should be done. In Wyss' words, it's a "general leadership vacuum." To wit: ..President Clinton can't get the Fed to lower interest rates, and he can't get the House to give the IMF $18 billion. ..Prime Minister Kiichi Obuchi can't get the Diet to approve bank-reform legislation, and he can't get the Japanese consumer to start spending more money. ..Chancellor Helmut Kohl can't get Hans Tietmeyer to lower interest rates and can't guarantee that German voters will return him to office. ..IMF Managing Director Michel Camdessus can't stretch his depleted funds to cover every crisis, and he can't get the capital markets to reward countries that fall short of their promises. ..President Fernando Henrique Cardoso can't agree to anything before he faces the Brazilian voters on Oct. 4. Robert Rubin was speaking Wednesday about the countries in crisis, but the Treasury secretary's analysis could apply equally to their would-be saviors in the G-7 and IMF: "The politics of reform must keep pace with the policies of reform." So far, the policies are far ahead of the politics. Incremental progress Adam Szamosszegi, a senior research associate at the Economic Strategy Institute in Washington, said he expected incremental progress on a number of fronts in the coming week. Obuchi will give Clinton a "gift" of bank-reform legislation at their face-to-face meeting in New York on Tuesday. The IMF and the G-7 will quietly put together a rescue package for Brazil that can be quickly implemented after the election, assuming Cardoso wins re-election. Time is running out for Brazil. "The odds favor devaluation," Wyss said. A Brazilian devaluation would threaten the currencies in Argentina, Chile and, ominously, Mexico. "If both Brazil and Mexico go, it's hard to see how the markets can have any confidence in the rest of Latin America," Wyss said. Any immediate threat would likely force Rubin to tap the exchange-stabilization fund, a $30 billion kitty that he used in 1995 when Congress wouldn't go along with a more traditional aid package to Mexico. He'd do the same thing again, Ryding said. "Brazil's the line in the sand," Ryding said. Greenspan, too, will be thinking about Brazil when the Federal Open Market Committee gathers on Sept. 29, Ryding said. "A rate cut depends entirely on Greenspan," Ryding said, adding that the Fed chairman left open the possibility of an easing during his House testimony Thursday, commenting that the forces of deflation are beginning to head our way. Wyss said the Fed will probably wait for real evidence of weakness, such as a rise in the unemployment rate or further instability in the stock market. Greenspan may be the one policy-maker who can have his way in his own sphere, but even Greenspan isn't all-powerful. "Lowering interest rates isn't the panacea," Ryding warned overconfident investors. All those other actors -- policy-makers, investors, voters and consumers -- have to do their parts, too. Rex Nutting is Washington bureau chief for CBS MarketWatch. *************************************************