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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: Mason Barge who wrote (7063)	10/1/1998 8:20:00 AM
From: Joseph Beltran	Respond to of 10921

Mason, maybe Japan is still expecting to "export" its way out of this mess.... regards

To: Mason Barge who wrote (7063)	10/1/1998 9:10:00 AM
From: Zeev Hed	Read Replies (1) \| Respond to of 10921

Mason, I thought that AG would actually keep the rate intact and keep the option of lowering interest rates to counteract any possible future melt down in the markets, but it turns out I was wrong. Lowering out interest rates will put downward pressure on the dollar which is not what Asia needs right now. The dollar is already under pressure because of our growing trade deficit, if the dollar breaks under 130 yen, it will exacerbate the problems in Asia, not improve them. As for our budget surplus, it feels good, but it is also very "dangerous" (note it is close to 1% of our GDP), if it gets much bigger than that it will precipitate a deep recession. A budget surplus means that $70 BB are taken out of the economy and not put back in. Historically, all great bear markets in this country were preceded by big budget surpluses. Lets hope the surplus does not go beyond this value. Zeev