Major World Indices

Selected Americas Indices

Canada's TSE 300 Composite was down Sep 24: -48.74 : -0.72%

United States' S&P 500 was down Sep 24: -3.05 : -0.24%

Selected Asian Indices

Hong Kong's Hang Seng was down Sep 24: -182.37 : -1.38%

Japan's Nikkei 225 was down Sep 24: -454.03 : -2.62%

Singapore's Straits Times was down Sep 24: -49.39 : -2.39%

Selected European Indices

Germany's DAX was down Sep 24: -113.04 : -2.13%

Switzerland's Swiss Market was down Sep 24: -100.1 : -1.42%

United Kingdom's FTSE 100 was down Sep 24: -32.1 : -0.54%

Headlines:

TORONTO, Sept 24 (Reuters) - Toronto stocks continued their losing streak on Friday falling for the sixth straight session as interest rate fears weighed on the minds of investors.

CHICAGO, Sept 24 (Reuters) - U.S. dollar swap spreads added about a basis point in the longer maturities Friday as the selloff in stocks deepened, dealers said.

NEW YORK, Sept 24 (Reuters) - Dealers in the $1.6 trillion emerging markets debt sector Friday criticized the current policy of western governments on the private creditor's role in a country's financial crisis and asked for a clarification.

NEW YORK, Sept 24 (Reuters) - U.S. Treasuries were mostly higher late Friday, bolstered by investors seeking safe haven in the bond market as stocks failed to revive from their current swoon.

NEW YORK, Sept 24 (Reuters) - Emerging market debt was mixed on Friday as nervous investors monitored a third day of jittery trading on the U.S. stock market, and ahead of key meetings between finance ministers of the Group of Seven (G7) major industrial nations this weekend.

-- Stan Faryna (faryna@groupmail.com), September 25, 1999

Answers

Got Food-stamps?

-- is the party over? (dogs@zianet.com), September 25, 1999.

I will be rich :)

Freddie already is!

Ddecker will be using his t-bills as asswipes...

Got Gold???????

-- Andy (2000EOD@prodigy.net), September 25, 1999.

But then ddecker has *faith* in the greenback :) (poor misguided simpleton that he is...)

Consider the Yen...

"When the Almighty Dollar, de facto totem of the world monetary order, can fall 18% in two months against the unit of a country which gives its currency away essentially for free, has severe demographic problems, no natural resources, a gridlocked and speculative political structure and a near-bankrupt fiscal position, we know that the end is near."

Got TP? No... I have t-bills!

-- Andy (2000EOD@prodigy.net), September 25, 1999.

But of course ddecker says I will be "broke"...

"Just as oil started out shyly at first, only to double in price in just a few months, so has gold only just begun to crack out of its basing pattern to begin its tentative but fundamentally assured assent. With the dollar weakening, oil and commodities firming, 2nd BOE auction boldly shrugging off bearish sentiment, major market indices all stumbling --led lower by a declining transport index and continued negative breadth, above all, the screaming indicator ( imho, at least ) is the ushering in of 4% lease rates by the central banks, demonstrating in no uncertain terms ( without proclaiming via any formal statements or announcements, so as not to arouse a panic- buying situation in the gold market ) that their gold will no longer be lent freely and profusely to speculative interests. They want to gradually recall their gold loans, and this policy is already in place.

Ladies and gentlemen : LET THE GOLD RALLY BEGIN! SEE SPOT RUN!!!"

-- Andy (2000EOD@prodigy.net), September 25, 1999.

All - from kitco...

"What storm clouds are there on the horizen, and will they cause a market collapse? I cannot answer the latter question, but I hope by listing the answers to the former, I hope I can stimulate some thought.

1 ) Runaway derivatives problem -- worldwide. Current outstanding $100 trillion plus and counting -- doubling on last review every two years.

-- This is like to lead to a few more spectacular fund, bank failures, like LTCM, and Barclay's. Deflationary.

2 ) Banking crisis -- steadily dropping banking equity indices -- no end in sight. This may be related to 1 ) . Whatever the cause, either APH or Cyclist stated that these indicators are worth watching, and to bail out at some time based on their trends.

3 ) Increasing worldwide debt, and 'paper' equity -- Eventually the public ( in the US at least ) will be unable to buy goods because they will run out of credit, or they will become unwilling to accumulated new debt. T-Bills will be as TP.

Hard to say when this will happen, but rising interest rates certainly does not encourage new debt. After the economic 'surge' from current storm damage, the US economy is likely to droop a bit, with the exception of Y2K-related purchases. Deflationary.

4 ) Impending Chinese devaluation. Just a matter of time. Deflationary. Timing depends on how much cash the Chinese government still has.

5 ) Rising commodity, oil prices. Inflationary at first, then deflationary if economy slows.

6 ) Y2K"

-- Andy (2000EOD@prodigy.net), September 25, 1999.

Andy,

As much as you wish to believe that the greenbacks will be worthless soon, IMHO the average Joe in the USA has been raised in such a fashion that the greenback is next to GOD. So it follows that no matter how bad it get economy wise, the greenback will be KING. Now while I agree that GOLD is looking like a good investment, you needthe money to buy it and the average Joe doesn't have the kind of money. As previously stated, a vast majority of people will take greenbacks long before they take gold. I don't know of to many people that would take a 1/10 oz gold eagle over the greenbacks. Not happening... In as much as I amnot in the financial shape I would like to be, I do see gold as a good INVESTMENT and that's it..

-- y2k dave (xsdaa111@hotmail.com), September 25, 1999.

Fair enough - check out Ravi Batra's latest book. And I agree with you about cash- cah will no doubt be king - initially - but there is a risk of serious inflation, maybe worse, then how will you have protected your savings/401k?

Batra may be wrong but I doubt it - the writing is on the wall, best thing is to try and cover all bases, diversify. the dollar is based on huge, monumental, debt. the dollar will no longer be the de facto reserve currency in the next millennium, that's for sure.

-- Andy (2000EOD@prodigy.net), September 25, 1999.

See the English version of gordon's post somewhere below here but NOT off the new Questions screen yet, for a GOOD take on what to expect Monday. Effectively, it's all dependent on what G7 does this weekend about the Yen-Dollar situation. If, as some think, they DEMAND that Japan DO SOMETHING and they DO NOT, then the Yen will go to something WELL BELOW 104 (closer to 100 or 95) and the market will "get it's ass kicked".

This looks to be the scewnario I would buy. Chuck

-- Chuck, a night driver (rienzoo@en.com), September 25, 1999.

You wrote: As much as you wish to believe that the greenbacks will be worthless soon, IMHO the average Joe in the USA has been raised in such a fashion that the greenback is next to GOD. So it follows that no matter how bad it get economy wise, the greenback will be KING.

There's an old saying that I learned as a recovering alcoholic some years ago.....Prayer won't stop the bear.

It means that if you're being chased by a grizzly and you stop to ask god for help, you'll most likely get eaten.

My point here is that you're already wrong. The dollar has already slid in value. You are missing the idea that we now live in this wonderfully linked global economy. Take out your dollar (almighty though it may be to you) and draw five equal sections on it. Then take one of the sections, cut it off from the rest with a scissors and throw it away. What you have left is the current dollar in real terms, not ecumenical wishful thinking. We have gone from 122 yen to 104 in two months!

Now cut off another section and get ready to throw it away if the G-7 fails to intervene this weekend (which I think they will). It is my hope that I'm wrong. Hope this helps.

PS-The leper pounding has already begun. Looks like columbia is firmly in the crosshairs, not surprising since they are pegged to? yes the dollar! Mexico is also getting slammed,,,South Africa is already deeply troubled.... This will roil markets in a big way. Interesting times.

-- Gordon (g_gecko_69@hotmail.com), September 25, 1999.

The outcome of the G7 fest this weekend will probably have some effects on Wall Street on Monday. On other days other things will have their effects on Wall Street. But if people plan to get hyper day after day about just what to expect the stock markets will do the next day, those people might want to invest in something to calm the nerves.

Hint: to know for sure what the stock markets will do the next day: wait until they close that day and you will be able to know. It doesn't take very long, in most cases just another 24 hours. Get a grip folks, before your nerves are in a shambles.

Jerry

-- Jerry B (skeptic76@erols.com), September 25, 1999.

I locked in a bit more gold, silver, platinum, and palladium Friday through e-gold (http://www.e-gold.com). I already had a position established; just added some more.

At the beginning of the week I opened an account and put a few bucks into the Prudent Bear Fund (http://www.prudentbear.com). I'm thinking I should have put in more.

BTW -- PHYSICAL metals and cash planted in a "midnight garden" is also part of a prudent "asset allocation" program. (In addition to food and water processing stuff.)

-- A (A@AisA.com), September 25, 1999.

What happened??

Stan, October happened early!

-- K. Stevens (kstevens@ It's ALL going away in January.com), September 25, 1999.

Andy et Gordon et alia:

Wall Street will be in great turmoil next week.

The Dollar is falling while the Yen is rising.

Be prepared, as I know you are, for the hard times we shall experience.

I truly wish the US stock market would not crash until next year, but I don't hold any power to stop the coming plunge.

-- Randolph (dinosaur@williams-net.com), September 25, 1999.

Stock market impact? See thread...

Silicon Valley Vulnerable To Foreign Disasters--Fallout: Taiwan Quake Shows Global Economic Linkage (Critical Choke Point--Added Y2K Analogy)

http://www.greenspun.com/bboard/q-and-a-fetch-msg.tcl?msg_id= 001TAr

-- Diane J. Squire (sacredspaces@yahoo.com), September 25, 1999.

Some people totally miss the point that having a few goods INFLATE in price, while every other commodity, and country and currency, is DEFLATING, actually only helps to hasten the DEFLATION! It may seem counter-intuitive, but the easiest way to explain this is to realize that most people have, in the short term, a fixed income, whether that be a paycheck or pension . With a constant amount of dollars to be spent, a RISE in one item(especially a NECESSITY item) means there is less remaining to spend for EVERYTHING ELSE! So, people will buy less ice cream, movies, etc. if they are forced to spend more on GAS, as we are doing now. BRING ON THE GREAT DEFLATIONARY DEPRESSION.

-- profit_of_doom (doom@helltopay.ca), September 25, 1999.

P.O.D.,

Actually, in times of economic distress, ice cream companies do good business. It's a small, yet affordable luxury that is within reach of most folks.

-- Wilferd (WilferdW@aol.com), September 25, 1999.

One pint of Ben & Jerry's ice cream is $3.49 (ONE PINT!). Bring on DEFLATION!

-- bardou (bardou@baloney.com), September 25, 1999.

Well, bardou, I suppose we should begin cranking out those old-time- fashioned ice cream recipes. Bring lots of ice and salt. Yeah!

-- Randolph (dinosaur@williams-net.com), September 25, 1999.

It's Edy's all the way! : )

-- Wilferd (WilferdW@aol.com), September 25, 1999.

Ahem,

Cough!

Gold Posts Biggest Gain in Decade as European Central Banks to Limit Sales By Vaughan Scully

Gold Prices Soar as European Central Banks Act to Limit Sales

Sydney, Sept. 27 (Bloomberg) -- Gold prices posted their largest gain in more than a decade after a group of European central banks said they will limit sales from their official reserves to 400 metric tons annually for the next five years.

Gold for immediate delivery jumped as much as US$17.75 an ounce, or 6.6 percent, the largest one-day rise in at least 15 years, to US$286.50, its highest price since May 7. The move outpaced the 3.4 percent gain for gold following the stock market crash in October, 1987. ``As far as the market is concerned, it's very positive,'' said Chris Hunt, manager of bullion services for Bank of Western Australia in Perth. Concern that new sales could emerge, driving gold prices down further, ``is now removed,'' he said.

A group of 11 central banks around Europe, as well as the Bank of England, the Swiss National Bank and the Swedish Riksbank, who together hold for about half the world gold reserves, pledged to limit their sales to those that already have been announced. Gold sales by central banks, particularly from England and Switzerland, helped push gold prices to a 20-year low of US$251.95 an ounce in August.

The surge today comes after a one-week rally that pushed gold prices up US$13.75 an ounce, or 5.4 percent, after a sale of 25 metric tons by the Bank of England drew unexpectedly strong demand and above market prices.

With central bank sales now under control, the balance of supply and demand appears much more favorable to higher gold prices, Hunt said. ``The market can reasonably absorb'' the 400 tons of gold to be divested from official reserves, Hunt said. ``There's a probably seven to 10 percent drop in production because of the low prices. Add to that exploration is at five, six or seven-year lows, and it leaves a handsome gap for the sales to fill.''

Central banks have sold between 80 metric tons and 600 tons a year for the past decade, Hunt said, so the future rate of sales is ``nothing unusual.''

-- Andy (2000EOD@prodigy.net), September 27, 1999.

Things do not look good for the Asia Pacific; 12 out of 15 markets declined

Among those hit pretty hard are:

China, Hong Kong, Malaysia, New Zealand, Singapore, South Korea, and of course, Taiwan

Most of these are now closed for the day

Australia +0.61 %

China -1.06 %

Hong Kong -2.60 %

India -0.35 %

Indonesia -0.18 %

Japan -0.30 %

Malaysia -2.12 %

New Zealand -1.34 %

Pakistan +0.82 % Philippines -0.63 % Singapore -1.35 %

South Korea -4.01 %

Sri Lanka +0.54 %

Taiwan -2.66 %

Thailand -1.04 %

-- @ (@@@.@), September 27, 1999.