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 : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Henry Volquardsen who wrote (1221)	2/3/1999 6:00:00 PM
From: Paul Berliner	Read Replies (4) \| Respond to of 3536

I think it's pretty awkward and even shady for an employee of a hedge fund to become Brazil's central banker. I can't quite understand why he'd want the job. I read that he used to be on the finance committee there or something - it all seems like a conflict of interest that the SEC should be pulling it's hair out over - only Soros operates offshore. Picture this situation: It was much rumored over the weekend that Brazil, maybe with the help of the IMF, would intervene with $10B to support the Real, as it's pretty much widely accepted that it's fallen too far. This was the main driver behind the rally in Brazilian shares Monday & Tuesday. What if Fraga were to launch a Real-boosting intervention the day before options expire next month, and he calls Soros and tells him in advance, Soros positions himself accordingly and makes a killing. This may go on behind closed doors all the time, but the appointment of Fraga will leave the markets over-analyzing Soros' every move from now on. Is it really that different than if Soros himself were the new CB?