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 : Telebras (TBH) & Brazil -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (11514)	1/13/1999 9:01:00 AM
From: md1derful	Read Replies (1) \| Respond to of 22640

C,SF: Been here before...BORRRRRING!! Good luck today, guys!

To: RockyBalboa who wrote (11514)	1/13/1999 9:04:00 AM
From: John Soileau	Read Replies (2) \| Respond to of 22640

Details: dailynews.yahoo.com Actually, I'm relieved, and becoming more inclined to buy now that the band has adjusted to reality. Worrying about this was getting old. Of course more deval could happen, but I think this lets a lot of steam off. And Brazil exports instantly got cheaper! John But watch the Dow get trashed today...

To: RockyBalboa who wrote (11514)	1/13/1999 9:23:00 AM
From: Telemarker	Read Replies (1) \| Respond to of 22640

Yes, they've tapped out the new band immediately. Obviously, this is not good news. We'll be seeing another new band set in a day or two, IMO. The question now is, how far will it have to go. If one accepts the widely stated view that the Real was about 20% overvalued, how much additional devaluation must we allow for emotions of the marketplace? I believe that the GOB would be well advised to find the bottom quickly (and to lose the IMF). U.S. Producer level inflation not too encouraging, as "Easy Al" may not be so prone to hit the liquidity button again. In any event, if the capital flight from Brazil is any indication, easy money has mostly gone into speculative internet stocks and consumer spending. Not where Greenspan wanted it, IMO. U.S. bank exposure to be another big problem. Bigger picture, I see this devaluation as somewhat positive, although it surely will be painful in the short-run. The tension of fiscal misalignments needed to be addressed, and having the IMF put an expensive smiley-faced bandaid on it won't do. I'm very positive about the next decade (ala Harry S. Dent, Jr.), but have felt that we need some serious jolts first. I'll be nibbling further if and when TBH breaches last year's lows.