On October 4, I sent the following reply to PEN-L: Barkley Rosser wrote, > The US stock market peaked on July 17 and has been >sliding since basically. The Fed's cut was supposed to >prop it up. It doesn't look like it's working. Indeed, it >is October, the historical month of great crashes, and >panic finally seems to be seriously setting in. Hold your >hats, folks. This is true enough. But it also has to be remembered that the increased likelihood of a great crash is only a statistical probability. The G-7 bankers and ministers could well come up with a contingency plan solely to avert an OCTOBER crash just so that they can declare "victory" on November 1. >The Vancouver Sun Friday, October 30, 1998 > >FINANCIAL CRISIS TAMED, FINANCE MINISTERS SAY > >Statement from G 7 countries will highlight some >of the efforts taken to stabilize the global economy. > > Giles Gherson, Southam Newspapers > >OTTAWA — Finance ministers from the Group of Seven major industrialized >countries are to issue a 10 page declaration today aimed at reassuring the >world that the global financial crisis is being tamed. > The statement will originate in London, reflecting Britain's chairmanship >of the G 7 this year, but will be released simultaneously in all seven >capitals. > The declaration will salute a string of unexpectedly positive developments >in recent weeks that are considered essential to restoring some stability >to international financial markets. > Among the measures the G 7 wants to highlight as evidence of a successful, >co ordinated effort to quell international financial turbulence are the >Clinton administration's success in overcoming stiff Republican opposition >to an $18 billion replenishment of capital for the International Monetary >Fund. Congress approved the measure last week. As well, the G 7 will pay >homage to Japan's much delayed passage of its banking reform bills to >rescue its 19 weakest banks in a S500 billion package, and Brazil's >agreement this week to an IMF economic program qualifying it for a $30 >billion bailout. > The G 7 will also demand that a series of Canadian initiatives pushed by >Finance Minister Paul Martin be implemented. They include: > > · International peer review of national bank supervision; > · A willingness to ease pressure on less developed countries to get rid of >foreign capital controls; > · A move to persuade private sector banks and other financial institutions >to agree not to pull short term loans from countries facing capital >shortages, thereby worsening financial crises. > > The unusual "plain language" G 7 document is a deliberate public relations >effort to counter widespread criticism earlier in the year that the body >has been too passive in the face of gyrating currencies, tumbling stock >markets and spreading economic slowdown. > During the summer, as the Asian economic flu spread to Russia and South >America, threatening the North American economy, the G 7 seemed unable to >provide visible leadership capable of calming markets. As one G-7 official >put it: "Golfing season is over and the G 7 ministers and central bankers >want everyone to know they're back in the saddle." > > > > > > Regards, Tom Walker ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ #408 1035 Pacific St. Vancouver, B.C. V6E 4G7 [EMAIL PROTECTED] (604) 669-3286 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ The TimeWork Web: http://www.vcn.bc.ca/timework/
