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

To: Jay Scott who wrote (6697)	9/24/1998 11:09:00 PM
From: Zeev Hed	Read Replies (3) \| Respond to of 9980

Jay, I think that they were involved in a complex hedge, one side of which included Russian paper bearing very high interest rates and they got caught in the devaluation (and the closing of Russian markets for more than two weeks?). Zeev

To: Jay Scott who wrote (6697)	9/25/1998 12:11:00 AM
From: Derrick P.	Respond to of 9980

Jay, It'll also be interesting to see how investors in bank stocks feel when they look at the lending exposure that their beloved institutions had to hedge funds, emerging markets... IMO this is one of the reasons for Greenspan's talk yesterday. He wants to instill some confidence. There seems to be a whole lot of this going around recently. Everyone is talking about how they will try and things are getting better and Latinam is doing the right things and..... I think they are scared. I think the IMF is out of cash. I think they are still looking at mountains of debt susceptible to default. Brazil can not possibly be alright. They are in similar markets and compete with China and the rest of Asia. How are they going to compete against these countries without devaluing? Are they not also over capitalized and debt leveraged? Not that devaluing is the end of the world but the debt will be be a 'problem'. Talk, Talk, Talk.... Somebody better have something lined up and it better be BIG. Or we will see more funds/banks evaporate. Derrick