Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: BGR who wrote (81803)	11/22/1998 5:08:00 PM
From: Ian Davidson	Read Replies (2) \| Respond to of 176387

O.T. AOL may buy NSCP: quote.bloomberg.com Ian

To: BGR who wrote (81803)	11/22/1998 7:33:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Apratim, I think you missed several parts of the argument. Up until the collapse of the Asian monetary system it had been widely assumed that businesses operating in the tiger economies were sound and were outcompeting their US counterparts. And during the boom times many Asian businessmen were loudly proclaiming trhe demise of western capitalism. It was only after the collapse of various Asian currencies that it became known that the businesses to which I referred were not making any money. Furthermore, the problem was not isolated, but pervasive. The New York Time broke the story last winter, and up until then I believe it was largely unknown. So to repeat, I am not talking about businesses that were using low prices to generate market share in furtherance of their plans for eventual profitable operations. I am talking about businesses that used their manufacturing activities as fronts for currency arbitrage. And they were able to get away with this because they were assured that the central banks of their respective countries would peg their local currency to the dollar, thereby protecting the interest rate spreads. Now maybe I'm old fashioned, but I believe that the function of a bank is to provide liquidity to meet the short-term capital needs of businesses, and to facilitate trade. It is not to create a system whereby members of a ruling clique allow their conies to profit through political connections. And when I refered to arrogance, I am specifically referring to comments made by the South Korean government concerning its competition with US companies. The fact is that the rotten combination -- the collusion between the government central banks, local banks and businesses -- brought the Asian economies to their knees. TTFN, CTC

To: BGR who wrote (81803)	11/22/1998 8:31:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

what do you say about the US Treasury getting involved in dollar-yen exchange rate stabilization? The purpose of US intervention has been to try to stimulate the Japanese economy and try to prod the Japanese to take what Washington considered to be appropriate steps. Whether this policy is correct or incorrect, it is a far cry from what the central bankers in some Asian economies were doing. And the businesses went far beyond dumping, which is generally viewed as a questionable tactic for gaining market share and eventual monopolistic or oligopolistic control of an industry. These companies were acting like hedge funds with government backing. In effect, the government subsidized the business (through pegging the currency to the US dollar), and in the process the businesses destroy foreign competition which enjoyed no such subsidy. TTFN, CTC

To: BGR who wrote (81803)	11/23/1998 8:53:00 AM
From: Lee	Read Replies (2) \| Respond to of 176387

Hi Apratim,..Re:.the US Fed's charter is to maintain price and job creation stability while the EMU's charter is price stability only. Actually, the Fed's charter is stable monetary policy which, in the long run, enhances job growth and output. See the following link for an explanation. bog.frb.fed.us Also, regarding your comment - As for central banks getting involved in currency arbitrage, what do you say about the US Treasury getting involved in dollar-yen exchange rate stabilization? Part of the job of maintaining price stability includes operations in the currency markets. See also the following link for a good explanation of mandate and operations. ny.frb.org The New York Fed also carries out foreign exchange market intervention, to help achieve dollar exchange rate policy objectives and to signal to the market that current market levels do not reflect what the monetary authorities believe is the true value of the dollar. Interventions by the Hong Kong Central Bank were also necessary to maintain orderly markets and the interventions were excellently timed to cause the maximum discomfort to speculators right at futures and options expiration. Regards, Lee