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To: James Strauss who wrote (55103)	10/9/1998 12:09:00 PM
From: NickSE	Respond to of 58727

TALK FROM THE TRENCHES: WHAT TRADES ARE GOOD THESE DAYS? By Robert Ramos and Joseph Plocek NEW YORK (MktNews) - Proprietary trading losses? A nervous debate over the size of the Street's position dumping continues, and it might not be just one firm here or firm there anymore. Rehab anyone? Meanwhile, the market has what one source calls "surface calm" today -- accounts sidelined but waiting for any more bad news. Tiger is said to have lost $2 billion on Wednesday as the yen gyrated.(OUCH!!!) The current environment gives significant new meaning to the phrase "you're only as good as your last trade." What trades are good these days? The coupon curve is steeper at +109 basis points, but nobody has the conviction to trade it like they did in the past. The spread reached a wide of +107 Thursday before retreating to 89 Bps. Players remain braced while they anticipate more rumors to hit the Street of further position liquidation. This only leads to additional defensive posturing as the "fear factor" equates to less liquidity in the markets. Morale is down across the board. Some players, catching their breath today, are realizing their net worth is a third of what it was in July. This is only going to get worse at year-end ... bonus time, of course. Troops hang their heads low and keep them down, trying to figure out how to trade their way out of this mess. Others fear they may be part of a much talked about personnel liquidation. Where is the white knight? Fed ease is still rumored. Former Fed official Angel joined the call for ease, telling clients Thursday that he expects an easing within two weeks. Another rumor, based on a Washington newsletter with a less-than-spectacular track record, puts the move at -50 basis points today. U.K.'s Blair is on board, saying the risks have shifted away from inflation. And President Clinton, not worried about impeachment for a moment, said "strengthening of the yen could be a good thing. The yen got too weak" and led to increases in imports of Japanese products into the U.S. But 50% volatility in one day? He's got to be kidding. (Talk From the Trenches is a daily compendium of chatter from Treasury trading rooms offered as a gauge of the mood in the financial markets, and should not be confused with reporting of verifiable news events. Telephones: Isobel Kennedy and Robert Ramos (212) 509-9298; Joseph Plocek (202) 371-2121; Suzanne Cosgrove and Alyce Andres (312) 214-3336) 09:43 EDT 10/09 economeister.com

To: James Strauss who wrote (55103)	10/9/1998 1:02:00 PM
From: B.REVERE	Read Replies (1) \| Respond to of 58727

Jim, these agencies can only provide very minimal funds. The IMF is the one with the potential to provide the 30 billion minimum that Brazil will need to avert a currency crisis. Most believe that the amount needed is closer to 100 billion, 30 would probably keep them liquid till the new year. Later, BR

To: James Strauss who wrote (55103)	10/9/1998 3:52:00 PM
From: James Strauss	Read Replies (1) \| Respond to of 58727

New Highs 10 New Lows 352 Let's keep these numbers in mind before we celebrate today's bounce... Until we see New Lows of 40 or less on a consistent basis the general trend of the market continues downward... We should be breaking below 7000 between now and mid November... Jim