----- Original Message ----- From: "Jurriaan Bendien" <[EMAIL PROTECTED]> To: <[EMAIL PROTECTED]> Sent: Sunday, February 29, 2004 3:35 PM Subject: Re: [PEN-L] Greenspan and the use of time to commit fiscal crime
For 2003 as a whole, new money flowing into the hedging industry in the US > is estimated at $72.2 billion, a more than fourfold increase over $16.3 > billion in 2002 and more than double the previous annual record of $32 > billion in 2001. In his latest Congressional testimony, Alan Greenspan notes > that firms have increasingly hedged their currency exposures, which means > the dollar might fall further. Do you understand what this means ? No. Does > David Schanoes know this ? He doesn't. ________________________ Talk about insignificant. Get with the program JB. Six years ago average daily trading of currencies was 1.5 trillion. That's each day. In financial derivatives alone 18 trillion dollars were traded for 1998. You're at 2003 and you are way way behind the times. Currency hedges were initially developed so corporations could protect their exposure to currency fluctuations and their impact on earnings. The mechanism then became directly its opposite-- a mechanism for aggrandizing earnings based on increased volatility. The decline of the dollar is 1. overstated. remember when the Euro was introduced it was at the official rate of 1.15 to the dollar. 2. symptomatic of trade difficulties, and a beggar thy neighbor attitude, itself symptomatic of the reduced rate of growth of profits. 3. very beneficial to the US as it can redeem its securities with depreciated dollars. So what's Greenspan's point? The Dept. of Commerce through any number of vectors, BEA, Census Bureau, Office of Trade, etc.and the FRB make these statistics available in real time and for free to anyone with an ISP. One more point-- your remarks to Joanna Bujes are completely out of line and have no place in public communications. dms dms
