Forum Archive Index - August 2002

[nickk@quicksilver.net.nz]

Interesting news overnight.  Steven's post was startling and the IMF news 
even more so.  Why didn't they just give the money to Shittigroup and/or 
JPMC?  That is the net effect.  Where does IMF money come from?  The banks.  
It is a short term solution to a long term problem and the DOW overreacted.  
The loan took the heat off US banks in the short term.  It also represented 
a change in stance for the US government. 

Since the IMF loans are funded by major banks all over the world it is 
obvious the banks knew it was in progress.  Conspiracy theorists might 
speculate that Alan Greenspan blessed it as a way to support the US markets 
without having to cut rates.  Time will tell there. 

I've read that major US banks have about a $30 billion exposure in Brazil 
already and had the country gone under would have had serious implications 
for the US.  It still  might have.  The Fed have obviously made a decision 
that any measure be taken to keep the US stock markets from melting down 
before November elections.  The PPT has been busy for a while now.  With 
insolvency rumors swirling around JPMC and Shittigroup the Fed decided to do 
whatever it took to protect the markets - simple as that. The IMF move in 
Brazil is one of those steps.  Brazil's debt is at $500 billion.  There is 
no hope it can avoid a default and the loan was only a stop-gap measure.  
What you did not hear in most media was that they would only get $6 billion 
this year. 

IMHO the world outlook has not changed.  Watch for Greenspan's bullish 
statement this week when the Fed reserve meets.  Again, IMHO it is all hot 
air. 

Have a good weekend everyone. 

Nk 


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