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To: Tundra who wrote (56542)	10/28/1998 8:47:00 AM
From: B.REVERE	Respond to of 58727

Tundra, I feel Brazil going into recession is a foregone conclusion. The austerity measures they will announce today will not be in effect until their parliament approves. Since strong opposition exists, these measures won't come forth until FEB.1999 at the earliest. Once the IMF gives them the money, look for an expansion of the currency trade bands to be enacted to affect a devaluation. The futures market is a joke. It is controlled by a small group of power players to try to influence the markets underlying valuation fundamentals. I disregard the numbers being reported as they make about as much sense as China's reported 8% GDP numbers. Whether these manipulators of financial markets affect a day's trading is irrelevent in the near term. As companies let go thousands of people to keep their companies profitable, less and less of these company's products and services are going to be bought. Earnings valuations may mean nothing to a 401 k investor who doesn't read, but being out of work sort of brings them back to reality. Looking for a protracted bear market here and globally based on world under consumption due to currency devaluations, high unemployment and continued tight credit. Lower interest rates didn't help Japan as their markets dropped 70 % over 8 years and their people actually save their money. Our savings rate is about 1/2 per cent, the rest goes into pension plans. As GReenspan orchestrates the biggest equity collapse in history to save the bond market, the small investors will get crushed as their life savings goes up in smoke. Later, BR