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On 8 Sep 98, at 12:52, Felix TY wrote:
> I just heard that the Hongkong gov't marshalled all the major listed
> companies' owners to a meeting and essentially "told" them to
support
> and buy their own shares. This may not be a popular move for
those free
> market internationalists,but its working so far,
<<snip>>
HKMA (monetary authority) has been spending many yards to
support market in the past two weeks. It should be noted by all
specualtors that many of these troubled countries are adapting a
"death to the speculators" policy. All rules are off, trading assets
may
be frozen, currency trading suspended, short sales prohibited, etc, -
-
whatever it takes. And and each country is bold enough to try these
things, all the others are watching, and thinking about their own
situation.
The current situation is anything but a "free market" environment,
and the squeezing of participants will continue. This will fuel upon
itself, as the rising currencies remove the benefits of carry trades,
etc.
The result is added fuel via repatriation.
In addition to the short-term nightmare, these protectionist actions
will
virtually guarantee an enormous flight of investment capital from
anywhere
near these countries, making their rebuilding and recovery very
hard.
Caveat emptor to traders.
Cliff
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