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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: Steve Porter who wrote (25841)	12/4/1998 2:39:00 PM
From: joe	Read Replies (1) \| Respond to of 45548

Steve, If you fail to see what the impact of Brazil was yesterday, you are might seriously want to look into it. The problem is that Brazil "could" be at the point of devaluing it's currency if the IMF does not approve a loan. Do you remember the devaluing of S.Korea? Indonesia? Russia? You certainly remember how the markets reacted, right? The reason being is that all of E.Asia has had their currency devalued, so it can't buy the US products, because they're too expensive. If it was just Brazil, it wouldn't be a problem, but this "world problem" has spread to enough countries where exports of US products would be seriously reduced affecting US corporate profits. Also, if Brazil devalues, it will cause a chain reaction for all the S.American countries to devalue, further putting more strain in other countries, which goes back to E.Asia which has to devalue some more. It's a vicious cycle. Another thing, is that Brazil may then have to default on some big loans (as did Russia) from some big US Banks. This kills US Bank profits, which snowballs into other things. Believe me, you don't want to see Brazil devalue. Don't feel bad. I never took Econ 101 either.:-) I just like reading about it.:-) joe