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

To: Jay Scott who wrote (6567)	9/22/1998 10:41:00 AM
From: Henry Volquardsen	Respond to of 9980

Hi Jay, As you say, specific emerging market equities are not my area and I am not a country analyst. But from what little anecdotal evidence I have seen Indonesia comes close to the top of the untrustworthy category. I have heard them referred to as cartoon potentates. Any country can be reformed but nothing I have seen regarding Indonesia makes be believe they would be at the head of the list. Henry

To: Jay Scott who wrote (6567)	9/22/1998 11:48:00 AM
From: Henry Volquardsen	Read Replies (3) \| Respond to of 9980

To the thread: Keep your ears open the next few weeks. There are rumours in the markets of a 'big package' being put together by th G-7 to put some sort of floor under global risk generally, and emerging markets specifically. There are no specific details as yet but the sources appear credible. Timing appears to be after German elections and the Fed's meeting. Brazil appears to be the near term target. Russia, however, does not appear to be high on the priority list. From a strategic perspective this makes sense. The speculative community was hurt badly by Russia and Malaysian currency controls. They are not in as strong a position as they were 6 months ago. So the timing is right for a concerted defense. But even given that the G-7 need to select the right point to set their line of defense. Russia is a basket case and indefensible given its current situation. Brazil on the other hand has a real and functioning economy. Yes they have problems but they are amenable to reform. Brazil would probably be the G-7s best target for drawing a line in the sand. FWIW I am not saying yes or no to what ever plan may be in formation. There are not enough details. But we could be in for some interesting developments. And it certainly makes sense for the G-7 to try something and I've been expecting them to pick Brazil. Let's hope it is their Bastogne and not their Alamo. Henry