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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Paul Berliner who wrote (8197)	3/5/1999 10:08:00 AM
From: MikeM54321	Respond to of 9980

"Maybe the market will have another irrational 'relief rally' if the Yuan is devalued, like when the Real was cut loose." Paul, That was a strange event, I agree. I still don't understand why we had that rally. I remember hearing this comment, "Asian currencies collapsed and that was ultimately good news for the US economy. So a Brazilian real collapse must be good too." Just didn't make much sense to me because we are exporting quite a bit to Latin America. But I really wonder, how much more damage is there left for our exports to Asia, "if," China devalues? I do know there is hardly a day that goes by where there isn't an article written on the doomsday scenario of a yuan devaluation. It is pretty amazing how long China has held on. But like Ramsey pointed out, it's easier when you have such a controlled economy. This control would be key in just moving the yuan down slowly(IMHO). I'm just wondering if a yuan devaluation is overblown? That's all. A relief rally on that news would be mind-blowing, but possible. MikeM(From Florida)