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Non-Tech : Derivatives: Darth Vader's Revenge -- Ignore unavailable to you. Want to Upgrade?


To: Henry Volquardsen who wrote (859)3/26/1999 3:31:00 PM
From: Freedom Fighter  Read Replies (1) | Respond to of 2794
 
>>Absolutely, the central banks often step in and act in the role of the investor. And fill in
when other investors lose interest. But they do it in their self interest. Why does Japan
support the dollar? Because if there are insufficient investors to buy dollars the currency
will decline sufficiently to shrink the US trade deficit with Japan. They act to prevent
this.<<

I understand why they often do it. What I am wondering is whether they would they do the same with their personal accounts. I sense there is non-free market aspect to this intervention that serves to NOT achieve the balance you are talking about.