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.

Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: John Gault who wrote (34611)	11/30/1998 11:32:00 AM
From: per strandberg	Respond to of 94695

JG, American banks feel threatened so they will just call on the white knight IMF. The banks: "If we loose a lot of money, that we have invested in poor countries just to help them expand, maybe we can't pay John Doe back the money he lent us. Hence if John Doe's tax money can be given to IMF and then forwarded to the defaulting countries, then they can forward the money back to us. Then we can operate at a profit and protect John Doe's money and give him all the services he needs. This plan is proposed only for the best of John Doe and has nothing to do with possible problems for us banks!"

To: John Gault who wrote (34611)	11/30/1998 11:48:00 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 94695

How does over production end when producing countries are reliant on the money generated by oil? John, This has been one of the main factors that I look at in predicting that we'll be seeing debt default in 1999 and 2000 (due to Y2K induced credit crunch). As commodity prices continue to fall, debtor nation's ability to service their debt declines. As a response the Fed lowers interest rates in order to boost the liquidity of money center banks with exposure to this debt. There were able to temporarily put the cork back in the "genie bottle", but when he eventually gets free, there will be hell to pay. Btw, I sincerely hope that my negative forecast does not come to pass. I would love to think that my hedging during 1999 is merely an opportunity cost allowing me hop back on the "long bandwagon" in 2000. Regards, Ron