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

To: Steve Fancy who wrote (12190)	1/21/1999 3:58:00 PM
From: Steve Fancy	Read Replies (2) \| Respond to of 22640

Brazil much more serious for U.S. than Russia was Reuters, Thursday, January 21, 1999 at 15:22 NEW YORK, Jan 21 (Reuters) - Federal Reserve Bank of St. Louis President William Poole on Thursday described the situation in Brazil as having far more serious implications for the U.S. economy than the Russian crisis did last year. "The Brazilian situation is potentially much more serious for the United States than the Russian situation, but the market has responded in a measured way to Brazil," Poole told the St. Louis Society of Financial Analysts. "I suspect that the differing responses reflect widespread contingency thinking after Russia," Poole added in remarks also available in New York. "Competitive markets ought always to respond in the well-informed way they have responded to Brazil," Poole said of the limited U.S. market reaction since Brazil last week let its currency, the real, float. Poole pointed out this showed not only the different economic fundamentals in Russia and Brazil but also U.S. capital markets' recovery from the turmoil triggered by the Russian default. "Investors have taken the Brazil situation in stride. The puzzle to me is not the market reaction to Brazil this month but the reaction to Russia last August," the St. Louis Fed president added. Copyright 1999, Reuters News Service