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Non-Tech : Tulipomania Blowoff Contest: Why and When will it end? -- Ignore unavailable to you. Want to Upgrade?

To: Eric Klein who wrote (753)	1/20/1999 1:27:00 AM
From: Kailash	Respond to of 3543

Eric - I have no special understanding of the Brazilian economy but it is an open secret that the US wanted the currency devalued. Brazil's central bank was spending their currency reserve to the tune of billions to prop up the real while further billions fled in anticipation of an inevitable devaluation. That's what was worse - spending all the bailout money in a futile attempt to prop of the real; it's money straight out the window. Now the money is no longer flowing out but they may default on debt. It's a bad situation any way you look at it and an abject failure of the international community to avoid a crises - they tried hard. As usual, the pundits like to say the fallout won't be that serious, though this time it is already hurting the dollar in anticipation of bank and trade losses. It'll be interesting to see what Greenspan says tomorrow. Kailash