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To: John Hunt who wrote (16898)	10/30/1998 6:37:00 PM
From: Link Lady	Respond to of 18056

infobeat.com G7 acts to strengthen global financial system LONDON, Oct 30 (Reuters) - The Group of Seven (G7) leading industrial nations proposed a range of measures on Friday aimed at strengthening the global financial system and heading off future economic crises. British finance minister Gordon Brown, summarising a G7 statement at a news conference in London, said the group agreed that slow growth, not inflation, was now the main risk facing the world economy. Britain coordinated the statement in its current capacity as chairman of the Group of Seven, which also includes the United States, Japan, Germany, France, Italy and Canada. Brown said the G7 had agreed to provide additional resources of $90 billion for the International Monetary Fund (IMF) by increasing its quotas, or membership subscriptions. The money would go toward paying for a new financial safety net at the fund to help economies that run into economic trouble. Outlining a series of steps to improve supervision of global finance, Brown said global regulators and their systems needed to be as sophisticated as the markets they monitor. He also said that recession-hit Japan, the world's second-largest economy, recognised the need to shore up its creaking banking system as a matter of urgency.

To: John Hunt who wrote (16898)	10/31/1998 6:06:00 AM
From: John Hunt	Read Replies (1) \| Respond to of 18056

Latest Contrarian - Fed wants gain but no pain stocksite.com << Part of what got the market all lathered up yesterday was an article in Business Week reporting that the Federal Reserve Board is watching U.S. credit markets. Apparently Greenspan doesn't think that the credit markets can be considered healthy until the difference (spread) between the yield in the most recently issued 30-year Treasury bond and the one that was in the months before ("off the run paper") returns to five basis points. It currently stands at 18 basis points. Greenspan is a spread trader. So now he can ease if he perceives a credit contraction, if he perceives economic weakness or if spreads are too wide. These guys are flopping on the rug like a fish on land. The bottom line is that the Fed is determined to print money until the cows come home, and it has been doing so. The ramification is a weaker currency, and at some point the bond market won't like it and the stock market won't like it. In the meantime, the stock market loves it, the bond market doesn't mind it and the dollar has been acting kind of heavy. It is a brave new world and the Fed is on the stock market standard. The only thing the Fed is supposed to do - preserve the purchasing power of the currency - is the one thing that it doesn't seem to give a damn about. The Fed thinks it is supposed to preserve the stock market and the economy. I think that Greenspan believes somebody elected him economic czar. >>