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

To: Haim R. Branisteanu who wrote (36446)	1/15/1999 9:04:00 AM
From: sammaster	Read Replies (3) \| Respond to of 94695

why would US and brazil be up on the news that brazil is free floating real...thus effectively devaluing it? seems like a worst case scenario..doesnt it? this means lots of losses for US banks that loaned to them...less exports for us to them because of recession...less exports to all of latin america because of competition from brazil...possible spread of devaluation to all of latin america...meaning less exports..etc..etc wonder when foreign countries are stop going to look at US as a safe haven and start repatriating assets? the pain is slowly creeping closer and closer to home.. samir

To: Haim R. Branisteanu who wrote (36446)	1/18/1999 1:28:00 PM
From: Jack Gibson	Respond to of 94695

Haim: Forgive late response. Out of pocket. Brazil fooled most economic gurus, when the government jerked the plug the day after saying that such an event was out of the question. But, I think that even more people were surprised when seemingly the whole investment world responded very positively to the news. Now, if they can get a couple of bills through Congress that the IMF demanded as conditions precedent to further cash infusions, we might get another pop. All of this is a bit perplexing to me. I am aware of the fear of a "domino" effect that a total Brazilian collapse might cause, but it still seems to be a mite overplayed. Maybe it is another Wall Street overreaction.......maybe not; I'm not knowledgeable enough to even guess at it. lots of luck Jack Gibson