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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?

To: porcupine --''''> who wrote (942)	11/5/1998 6:23:00 PM
From: Freedom Fighter	Read Replies (2) \| Respond to of 1722

The U.S. Dollar and the German Mark - Greenspan In Alan Greenspan's talk this afternoon he spoke about currencies. At one point he classified the U.S dollar and German Mark as seasoned well established currencies of comparable high quality. I disagree strongly. Take current events for example. In the crisis several weeks ago the German banks took a much more serious monetary hit than the U.S banks. They also have much greater exposure to Russia and some emerging markets. The German economy is also presently suffering from significant unemployment. Yet despite that, the Bundesbank has yet to drop interest rate even though much of Europe already has. This is how a real currency to managed. Price stability and currency value is the most important thing. On the other hand, at the first sign of trouble, the U.S. Federal Reserve lowered interest rates. Not once, but twice. Anything to prop up the system and excesses. This is partly why the U.S is the greatest debtor in history. This is partly why we have a large and growing trade and current account deficit. We are constantly flooding the system with money at any sign of trouble and as a result we are flooding the world with Dollars and IOUs. For now the U.S. dollar maintains it value for several reasons. 1. ILLusion 2. Delusion 3. There are not enough of German Marks or Swiss Franks to be the reserve currency. 4. Governments have effectively demonetized gold for now. Wayne Crimi Value Investor Workshop members.aol.com

To: porcupine --''''> who wrote (942)	11/6/1998 10:18:00 PM
From: porcupine --''''>	Read Replies (2) \| Respond to of 1722

>this was one Dessauer really pushed: >dailynews.yahoo.com/headlines/bs/story.html?s=v/nm/19981106/bs/singer_2.html Well, Boeing was one I really pushed <g> -- and still do. Both Singer and Boeing are major casualties of the depression in Asia. A couple of years ago, the Singer story looked appealing. A great franchise, a Europe finally undergoing corporate rightsizing, and an Asian market where a sewing machine can be the basis for a home-based business. Then Asia fell apart economically. Suddenly, Singer was just another low margin manufacturer of appliances that, in mature markets, rarely need replacing -- a la Sunbeam.