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To: Bucky Katt who wrote (21854)	10/17/1998 3:22:00 PM
From: Little Joe	Read Replies (2) \| Respond to of 116762

Wiliam: re: 'I am not sure this is a very good time to take a big gigantic gamble with the world economy,'' the Georgia Republican told lawmakers on the House floor, explaining why Republicans had reversed course on the issue. WoW!!!!! Read between the lines. Whatever he knows is so scary that he is reversing course and letting go of a politically potent position. I am now even more convinced that the situation is far worse than we know. Live long and prosper, Little joe

To: Bucky Katt who wrote (21854)	10/17/1998 4:30:00 PM
From: Alex	Read Replies (1) \| Respond to of 116762

Rubin Sees No Quick Fix To World Financial Woes NEW HAVEN, Conn. (Reuters) - U.S. Treasury Secretary Robert Rubin said Saturday that there is no quick fix for the world's financial problems but the path to solving them and preventing future turmoil seems clear. One of the main challenges is to bridge the gap between ''the sovereignty of nations on the one hand, and the demands of the transnation global economy on the other hand,'' Rubin said in a speech to fellow alumni of the Yale Law School. World financial market turmoil, the collapse of growth in Asia and fears of a global credit crunch are forcing economists to lower their forecasts for global growth and admit that recession cannot be ruled out. But Rubin, a 1964 graduate who received the school's award of merit Saturday, expressed optimism a more successful global financial framework can be hammered out. ''I believe that we have a good understanding of the crisis, what needs to be done and the components of an effective architecture for the future global financial system,'' he said. But he added, ''There are no magic wands or easy answers.'' ''A crisis that is a product of problems that developed over many years will take time to work out, and working out requires that each nation -- industrial and developing and each international financial institution -- do its part.'' The present predicament is the most serious world financial crisis of the last half-century, he said. Solving it will involve not just economic policy but a host of legal and political initiatives, Rubin said. Rubin cited South Korea as a good example of how ''generating political support and effectuating economic reform must go hand in hand'' in both developing and industrialized countries. ''The new government of President Kim Dae-Jung, a remarkable leader who had been in prison for his beliefs and then eventually became president, pulled together companies and labor unions to build support for reform. Now, short-term interest rates have fallen from 25 percent to 7 percent, (and) the currency has substantially strengthened.'' Rubin said he does not buy into the theory that governments have become irrelevant in the age of huge global markets. ''I think that's exactly wrong. Government decisions will greatly affect how these markets will treat a country's economy.'' Regarding the possible regulation of hedge funds and offshore centers that host them, Rubin said regulators will have to figure out a way to make ''lenders and creditors part of the solution when crisis hits so that they bear the consequences of the risks they take.'' He said it is important to keep in mind that the new global markets have led to vast improvements in human welfare. ''In my view, a market... economic system and relatively free global trade in goods and services and flow of capital are the systems most likely to promote global economic well-being going forward,'' Rubin said. dailynews.yahoo.com