This AM union brother "Bumper" had to go to a tool store to pick-up a couple of sets of impact sockets for the learning center. The counter"boy" flim-flamed brother "Bumper" into taking a couple of sets of foreign made impact sockets. "Bumper showed them to me when he got back. I reminded "Bumper" of our Union made-American made policy. The impact sockets are now on their way back to the tool store! Fraternally yours, Tom Lehman
Doug Henwood wrote:
> The German sadomonetarists aren't happy.
>
> Doug
>
> ----
>
> FINANCIAL TIMES
> Munchau, Wolfgang, Bundesbank attacks IMF over Asia., 07-03-1998.
>
> ------------------------------------------------------------------------
>
> Senior German government and Bundesbank officials yesterday criticised
> the International Monetary Fund, saying it had contributed to the
> financial crisis in Asia through generous financial assistance.
>
> Hans Tietmeyer, president of the Bundesbank, and Jurgen Stark, state
> secretary in the finance ministry, said consecutive IMF bail-outs had
> lulled investors and lenders into a false sense of security, and had
> helped spread the crisis throughout the region.
>
> They warned in particular about "moral hazard", as investors get used to
> being bailed out by IMF support programmes.
>
> The outspoken criticism, at a joint conference organised by the
> Bundesbank and the IMF, highlights the long-standing gulf between
> Europe's conservative financial establishment and the IMF.
>
> In a speech to the conference, Mr Tietmeyer said: "The basic problem of
> any form of interventionist economic policy [is that] the other players
> come to expect interventions and anticipate subsequent measures. On
> balance, it has become clear that an interventionist strategy for
> managing financial crises can easily lead to a dead end."
>
> Michel Camdessus, managing director of the IMF, gave a vigorous defence
> of the IMF's record: "These [IMF] programmes are hardly bail-outs. Many
> private investors are taking heavy losses. With stock markets and
> exchange rates plunging, foreign equity investors have lost nearly three
> quarters, if not more, of the value of their equity holdings in some
> markets."
>
> In a thinly disguised counter-offensive he called on Europe to play a
> bigger role in the IMF than previously. "Europe must have a greater
> presence and must take on more responsibility as the biggest shareholder
> of the IMF," he said.
>
> European countries are the largest shareholders in the IMF, even though
> the US carries the strongest influence. European monetary officials have
> signalled that they intend to play up to their joint strength after the
> start of economic and monetary union among 11 European countries next
> year.
>
> In a separate session, Michael Mussa, the IMF's economic director,
> acknowledged the problem of moral hazard, especially in bailouts of
> large countries, such as Russia.
>
> But he said moral hazard was mostly created by domestic policies in the
> affected country rather than by IMF programmes.
>
> He said the large capital flows into Mexico and Asia had not been made
> by investors who expected IMF bail-outs
>
> Mr Stark, who is about to move from the finance ministry to become
> deputy president of the Bundesbank, countered that financial assistance
> to Mexico four years ago had triggered a fall in emerging markets bond
> spreads, caused in part by financial markets discounting future IMF
> intervention.
>
> Both sides agreed, however, that crisis prevention and management
> required better statistical information about capital flows, especially
> about loans with a short maturity, which played an important part in
> the Asian crisis.
>
> There was also broad agreement to engage private sector bankers dir-
> ectly in the crisis management. .
>
> Copyright Financial Times 1998. All Rights Reserved