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Strategies & Market Trends : Telebras (TBH) & Brazil -- Ignore unavailable to you. Want to Upgrade?

To: Steve Fancy who wrote (8908)	10/8/1998 11:39:00 AM
From: dougjn	Read Replies (3) \| Respond to of 22640

The following weird thought is pushing itself forward from the back of my brain. We all know that hedge funds are unwinding all over the place. Getting burned. Most recently by taking huge hits in the Yen carry trade (borrow yen, which was reliably going down anyway, at near zero interest rates, and then use the proceeds to speculate on all sorts of things). Same thing with bank and Ibank trading desks, which play the same currency and derivatives games. (And where the real, if somewhat more cautious, money is.) Now...maybe that just takes some pressure off the likes of Brazil? Why?? Because maybe the hedgies and broker trading desks are now just massively pulling in their horns, assessing their capital positions, and avoiding risk. Maybe that takes the aggressive attack pressure off of the real for quite a while. Is this nuts? I'm not long Tbr at the moment (haven't been for ages), so I can't see how this is wishful thinking. Doug