Brazil Monetary Policy and Asset Prices Bubbles Simulation:  Impact on Macroeconomic  and Financial Markets Asset Prices Bubble Risks OSA (Operations Simulation Analysis)
South American  Financial Crisis, Economic Recovery, wealth effect, wealth management , Risk Management OSA Presented to 24 Global central bank governors conference  since 1998 on the root causes, onset, spread, recovery, early warning of Asian, European, Russia, currency crisis.

Goal: Dr. Warren Huang Nobel prize dream :Dynamic tracking simulation the root causes, onset, recovery of  ASEAN currency crisis,  Asian , South American financial crisis, US, EURO slowdown impact on  Brazil  macro GNP, inflation, export,  interest rates, currency,  stocks, commodity, IT products properties prices impact on consumer and business spending, to predict, forecast overpriced asset prices resulted consumers spending imbalance and business profit slump due to central banks raising interest rates to cool off the economy, leading to bubble burst and abrupt change in consumer and business confidence caused stock prices plunges with average error below 1.5 %, correlation constant above 0.95.

Dr. Huang
, lectured on Monetary policy impact on global capital markets asset prices, bubble early warning, risk management  to E
uro-events  Asian finance, capital markets conference Nov. 5, 2003, China, finance, capital market conference, Nov. 25, 2003, Shanghai, Nov. 27, Beijin, 2003  and China third economic society annual meeting, Beijin China economic research center at Fudan university, Dec. 20, 2003,  and Asian Business Forum's  European, Asian central banks, stock exchanges, banking, securities executives on global nonperformance loan debt, equities, properties asset prices , credit risk simulation, investment strategy and Asset Backed Securitization workshops: predicting the unpredictable futures to  minimize bad loan ,shares buy back  procurement , investment costs and credit defaults risks  due to corporate scandal and global economic, cycle, financial crisis integration, interaction impact on interest, currency, industrial demand, prices, ?the causes, onset, history , recovery of nonperformance asset bubble bursts, default maximize investment return, auction resell , syndicated loan value recovery, workshops by thousands proprietary OSA simulation charts supporting daily financial engineering, structural finance application to Global Capital Markets Asset Management, Credit defaults risks control on this website

==== Global trillion dollar NPL assets prices simulation, recovery, prevention workshops,=====
OSA maximize nonperformance debt, equities, property asset performance, value recovery, pre-warning for future NPL workshops tracking the causes, onset, recovery, prevent of assets bubble burst for global central banks, banking , insurance, securities, real estate, chips, computer, telecommun- ication, oil, petrochemicals, plastics, fibre CEO, CFO, managers reserve your in-house workshop email wh3928@yahoo.com ==============================================================================
etary Policy on global stock prices,: Global stock prices and monetary policy impact on consumer and business spending. Global stock prices, monetary policy impact on housing properties prices and rent Global stock prices, monetary policy impact on GDP macro-economics performance. Global stock prices, monetary policy impact on procurement manager index Global stock prices, monetary policy impact on consumer and business confidence Global stock prices, monetary policy impact on saving rate. Global stock prices, monetary policy impact on corporate profit margin Global monetary policy, external shocks( commodities, currency and credit default) impact on bubble , burst, abrupt change of consumer, business confidence (Asian crisis, LTCM)

Global Central Banks Monetary Policy for Sustainable Growth and Asset Prices Stability Guidance and Control:  Policy Impact Simulation  Workshops
Monetary,  Economic, Fiscal Policy, WTO  impact
on Global  Economic, Business cycles, Asset, Wealth Prices  bubbles burst, oil, energy , Currency crisis, recession FEED FORWARD SUSTAINABLE GROWTH AND ASSET PRICES STABILITY CONTROL Financial Markets Return, Asset Allocation, Strategic Risks OSA
(RIGHT  HAND )  
Structural, Dynamics simulation of Monetary, economic, fiscal policy impact on last 20 years global macro economic, business cycles, capital market asset prices, bubbles , financial crisis, boom and busts achieving growth and prices stability control predicted 1- 3 month ahead,  Global financial crisis since 1980 and the root causes, onset, recovery of Asian Financial Crisis Asian Financial 2000 high tech bubble burst  July 2001 in Beijin   that Taiwan index plunged to 3400,  Henseng plug below 9000,  facing recession nd 2001-2003 global market crash and recovery :
Dr. Warren Huang HAS BEEN INVITED TO SPEAK TO 24 GLOBAL CENTRAL BANKS GOVERNORS  CONFERENCE ( FRB, ECB, China Peoples Bank, Taiwan, Japan, Korea, Thailand, Asian ) since 1998 warned that Global high tech bubble burst will plunge 50-70 % and facing recession. He offered thousands lectures accurately predicted China Peoples Banks monetary policy impact on 1994-96 macro-economic control-soft landing on China daily stock markets to China 15 cities 30 million investors, national newspapers during 1994-1998 in China and again predicted China excessive money supply, housing bubble facing tightening Mar. 2003 Shanghai workshops

USA    Australia  Asian  Canada  China   Hong Kong   Taiwan    Thailand   Japan  S. Korea   Singapore  Malaysia  Phillipines  Indonesia   Viet-Nan   India  UK/EURO  Russia/E. Europe    Mexico   Argentina  Brazil
 
Dr. Warren Huang accurately predicted 1998 summer on www.osawh.com  and Rome speech  that the falling oil, commodity prices and strong dollar will lead to  US  cut interest rates , to allowed South American, Asian countries cut interest rate to pre-crisis level, stock rebound strongly lead to increased Thailand and  Asian export growth, consumer demand,  recovery. 
Dr. Huang also accurately predicted on 1999 May Macao central banks governor conference   that US Fed will raise fund rate in June due to soaring stocks, properties, oil prices, which will take US stocks and Asian stock prices into minimum 15 % correction, and some internet stock with 50-90 % corrections, Dow Jones will test  9000, Nasdaq test 1600, Henseng test 10000, Nikkei test 12,000, Bangkok index down to 300, Taiwan index down to  4500 with  asset  bubble  simulation models on Macao's central bank governors conference, Taipei's Pacific Basin finance conference and Washington DC NASD conferences. during April and May 1999.
He also predicted in June 1999 in Barcelona on European Financial Management conference that Argentina PESO peg to the dollar will facing currency crisis in the next recession. and will drag Brazil into crisis again. It did in 2001 -2002 recession Peso depreciated from 1 to 3.7, Brazil facing 265 billion dollar default, Real depreciated from 2.2 to 3.5, stock plunged 16000 to 9000 in  Dow Jones crash crash ,March  2003
IMF 30 billion dollar give little boost in confidence , however help little in global slowdown, and Argentina crisis., despite stock soared to 10,000, currency stabilized, It still need more time in consolidation.
US rate and tax cuts , weak dollar boost US GDP growth 8.3 % third quarter , US  and South American stocks.


Brazil OSA:
Monetary Policy on  inflation, GNP and economic indicators  for sustainable  growth and asset price stability)
OSA simulation  macro-economics:
Inflation rate = F (Money supply growth rate %, Oil prices,
Commodity index, Dollar exchange rate)
GNP = F (Money supply growth rate %, Interest Rate, Export Growth Rate)
Property prices = F (Money supply growth rate %, Interest Rate, stock index)
NAPM = F(
Consumer spending growth rate %, Interest Rate, stock index)
Business, consumer spending = F( Overnite interest rate, money supply growth, EURO exchange rate)
Stock indices = F( Dow Jones index), Interest rate,  exchange rate

Although  Brazil  was benefited by strong global demand lead to   rebound in commodity and coffee prices boost it's export  (due to Brazil depreciation from 1.1 to 1.9) and strong stock market rebound from 5100 to 11250 related wealth effect. in 2000 However The soaring oil, raw material prices and strong domestic demand lead to soaring imports, lead to widening trade and current account  deficit and declining foreign reserve 28  billion as in South American Financial Crisis.   Inflation soared to 16 % which put pressure on  currency  depreciation from  1.83  to  3.50. It  raising interest rate   to  26 %   US interest rate hike resulted recession  and Argentina crisis  cooloff the overheated  stocks, stock index between  7000- 11000, despite IMF 30 billion aid
manufacturing  production index :  facing decline due to high interest rate, US , Asia, EURO  slowdown  and Argentina problem, However, US economic recovery  US rate and tax cuts , weak dollar boost US GDP growth 8.3 % third quarter , US  and South American stocks.

Export : , Brazil is benefited by weak US dollar pushed soybean prices doubled from 400 to 900,coffe from 40 to 63   benefited by Real currency depreciation  will boost the export and trade surplus
Import :  stabilized  due to rising oil, raw material import prices,   Real and falling interest rates
Trade  deficit   trade  surplus soared to 23 billion due to export boost
Currency  rebound to 2.50-3.0  due to  widening  trade surplus and current account improvement , and rising inflation
stock index :  ,follow  Dow  soaring to 20000- 25000, need consolidation
Inflation still high at  10    %,
Interest rate :  15 % to support Real currency
GDP growth rate %:   facing recession return to growth soon    
 
These deterministic, dynamic simulation of last 20 years global asset prices, and economy boom and bust of the asset bubble vicious cycle of excessive monetary policy, low interest rate induced sustained long term bull markets stocks prices gain caused consumer and business spending in real estate properties pushed soaring housing prices and rent. And deficit spending (negative saving) in stock markets, pushed the stock s even higher, until abrupt reverse of consumer and investor confidence --the bubble burst- plunge of stocks and properties prices as it happened in US, Japan, Taiwan in 1980, 1987, 1990, energy crisis, EURO 1992 currency crisis, 1994 China runaway inflation, 1995 Mexico crisis, 1997-98 ASEAN, Japan, Korea, Russia, Brazil currency crisis, all caused by overpriced stock prices due to excess monetary policy and high GDP growth
 

Website : www.osawh.com email:    wh3928@yahoo.com
 

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