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Strategies & Market Trends : The Stock Market Bubble -- Ignore unavailable to you. Want to Upgrade?

To: Moominoid who wrote (2294)	11/3/1998 11:39:00 PM
From: sammaster	Respond to of 3339

but part of the deal for brazil was to raise taxes.... i believe that defending the currency and decreasing interest rates will not promote growth and will not prevent collapse of the economy if taxes are increased...that will lead to decreased spending and then economic collapse due to real recession and not just money flow leaving country part of this bailout may be what greenspan did to save LTCM....maybe collapse of brazil will lead to massive global hedge fund unwinding of billions of dollars and IMF is trying to avert that short term to give hedges time to unwind at a slower rate... this seems more logical because the brazil plan proposed will only postpone collapse because the underlying economy will deteriorate faster with the current plan...seems like a delaying tactic with no substance with no effort to trying to correct the underlying problem.... samir