thanks for this Chris ... two points from me.
Ms Krueger said she expected the fund's ministerial steering committee to instruct it to draw up changes to its constitution to allow bankrupt governments to negotiate with their debtors [sic] . " bankrupt governments can, of course, already negotiate with their creditors. It's always important to remember that the Krueger proposals are aimed at _preventing_ bankrupt governments from negotiating defaults with their creditors unless they do so by going through the IMF. As Chris correctly points out, these proposals look less like a reputable bankruptcy procedure and more like a creditors' cartel every day. Ms Krueger said Brazil's macroeconomic situation was "clearly sustainable", but she warned that the high interest rates on its bonds might require policy to be tightened if they did not fall. ohhhhhhhh Goddddddd! for crying out loud. People have been alternately laughing and crying at the IMF for this sort of statement since 1995 and they still haven't got the message. The policy of "deflate your way to success" and "investors love to see a destroyed real economy" has been tried in Mexico, Thailand, Indonesia, Russia and Argentina and hasn't worked once. Count me in the "est delenda" camp these days .... dd ___________________________________________________ Email Disclaimer This communication may contain confidential or privileged information and is for the attention of the named recipient only. It should not be passed on to any other person. Information relating to any company or security, is for information purposes only and should not be interpreted as a solicitation or offer to buy or sell any security. The information on which this communication is based has been obtained from sources we believe to be reliable, but we do not guarantee its accuracy or completeness. All expressions of opinion are subject to change without notice. All e-mail messages, and associated attachments, are subject to interception and monitoring for lawful business purposes. (c) 2002 Cazenove Service Company or affiliates. Cazenove & Co. Ltd and Cazenove Fund Management Limited provide independent advice and are regulated by the Financial Services Authority and members of the London Stock Exchange. Cazenove Fund Management Jersey is a branch of Cazenove Fund Management Limited and is regulated by the Jersey Financial Services Commission. Cazenove Investment Fund Management Limited, regulated by the Financial Services Authority and a member of IMA, promotes only its own products and services. ___________________________________________________
