European Stars And Stripes (Newspaper) - July 24, 1988, Darmstadt, Hesse                                Page 18 the stars and stripes business news profit taking sell offs erase Dollar s gains the Dollar limped through a troubled week on International markets As profit taking and concerted Selling by the Central Banks moved the currency off its recent 11-month highs. The Buck s most recent surge which began july15 on word that the . Trade deficit had improved for a third consecutive month capped an 8percent climb for the Dollar since mid june. The currency s recent gains were mostly erased however As the West German Bundesbank the Bank of Japan and the . Federal Reserve teamed to sell Large Greenback holdings. Traders said they took special interest in the japanese intervention be cause Japan had stayed out of the Market during the last few weeks of the Dollar s  Central Bank sell off was enough to trigger a round of profit taking by currency dealers adding to the Dollar s woes. The Bundesbank has sold dollars nearly everyday this month ridding its reserves of an Esti mated $8 billion since May traders said. Trad ers said the West German Bank now appears to by . Kominicki have won the support it needs from other coun tries to push the Dollar lower. They question whether this signals the end of the Buck s month Long rally. There s been a lot of talk about a split in think ing on the Dollar but that kind of talk has dried up an american banker in Frankfurt West Ger Many said Friday. Everyone s convinced the Ger mans Are now getting More support than they  it s enough to really turn the Dollar around though remains to be  rate hikes in several european coun tries also served to weaken the Dollar by attract ing investors to the higher yields. The Bundesbank raised most of its key lending rates again inthe past week the third time since the Start of the month. England has raised Many of its key rates six times since Early june in an Effort to combat  Pound soared in the past week As investors seeking safer ground away from the .currency, moved into the higher yielding Ster  the Buck s recent downward trend traders in Frankfurt and London believe Market interest in the Dollar remains bullish. They said they viewed the Central Bank intervention an profit taking As necessary and expected corrections that do not necessarily reverse the trend for a stronger Greenback. This is a temporary thing one West Ger Man trader said. No one s turning their Back on the Dollar. There s plenty of life left in  British trader predicted the Dollar will stage a second rally in the Short term returning to a Trad ing Range of Between 1.83 and 1.88 Marks and to a rate of around $ 1.70 against the Pound  general mood is for the Dollar to move upward again he said. There s still room for itto climb As far As the Market is  bolstering that View was the widely held belie that the Reagan administration wants and can afford a higher , however remains a threat traders and Bank economists said. The Federal Reserve reported last week that . Factories operated at 83.1 percent in june the highest level in eight years an close to the Point at which companies must expand or run the risk of not being Able to fill orders. That traders say would prove inflationary since a Short age of goods usually leads to higher  the fed would have to raise interest rates to combat the new inflation a Frankfurt banker said. No one s convinced that s going to happen before the election but you can t Dis count it As a  giving Power to the people suggested As economic cure All san Francisco up amid the thickets of ers and permitting businesses to restructure through theory on How to handle America s economic prob asset sales and layoffs i a a. ,.-�, o Limnio Ciao Octine it a almost predictable Harman said. If you sit in an environment which encourages a Pac Man approach to Industrial development what s going to Hap pen is that the operators Are going to be in charge who lems Over the next few years is a simple suggestion give More Power to the people. That is the pitch of two men who have spent year tracking Public opinion and crafting policy noted poll Ster Daniel Yankelovich and former Commerce undersecretary Sidney Harman. The two have written starting with the people i which they argue that . Economic and military poli cies fail to take into account underlying american values such As a lingering distrust of the soviet Union or an inclination toward free Market solutions Over government intervention. The result so called political experts Are sur prised when their policies fail at the polls or in the  Case in Point is rep. Richard Gephardt d-mo., who saw his presidential Campaign falter despite Strong Start. Yankelovich and Harman said Gephardt was the victim of the Public s fickle taste for Trade protectionism. On the other hand Jesse Jackson who has addressed the Trade Issue through a populist plea to hang onto . Jobs at Home fared better with the Public. An Early innovator in the Field of High Fidelity electronics Harman is now president of Harman International an electronics company. Yankelovich Heads disown consulting firm based in new York. Both men criticized the special Brand of perestroika or restructuring that has shaken corporate Ameri Ca in recent  perestroika Wall Street restructuring mergers and acquisitions it is not Only Neutral wit respect to people it is anti people Yankelovich said. The Public is sick to death of it business is sick to death of  eight years of a pro business Reagan administration ironically have led to unprecedented High Levels of worker dissatisfaction even at the top Yankelovich said. For the first time we Are picking up signs of disaffection and bad morale among White Collar managers he said. Harman who served former president Carter for year As Commerce undersecretary also takes Reagan to task for asking workers to save More and work harder while allowing Wall Street to Gorge itself on Takov not Only Don t care much about the Quality of a product they probably can t even identify what the product  mixed signals from Washington and Wall Street have overcome Yankee Thrift. Consumers recently interviewed by Yankelovich told him they now believe Itin t Wise to save because it would Hurt the econ  beneath the confusion Yankelovich sees a hidden quarrel Between Wall Street and the businesses that often become the targets of financiers. I would t be surprised if a kind of businessman populism surfaces As an Issue in the 1988 Campaign he said. People not policies Are seen As the biggest Factor interning around America s twin budget and Trade deficits and boosting competitiveness. The question then is How to come up with policies people will support. One Way Yankelovich and Harman suggested is forthe next president to create a National interest Board which would work with companies to implement National priorities. For example the Federal government could provide favourable tax treatment to manufacturers that keep jobs in the United states instead of sending them overseas. Harman also a former adviser to sen. Gary Hart suggests an Export corps similar to the peace corps in which Young americans would learn about the economies of America s trading partners and act As Liaison Between their companies and foreign Consumers. Yankelovich also favors using tax policy As a weapon against business practices that he says go against the american Grain. That strategy in t at Odds with polls showing americans Are inclined to let the Market work out its prob lems instead of asking for government to intervene he said. The recent insider trading scandals for example offended americans not Only on grounds of greed but of fair play. Experts advise savers to investigate before choosing investment vehicle new York. A As promised As Long As a decade ago the deregulation of the financial services Industry has Given savers and investors Many new ways to go about the business of managing their Money. If you want a traditional Bank product like a certificate of Deposit for example you May Well find it these Days at a securities brokerage firm. Conversely when you shop for an investment vehicle like a Mutual fund you might end up buying it through a Bank. The benefits in convenience seem Clear. And the enhanced Competition in theory at least should work to the investor s Benefit. But observers of the financial scene say the new entrants in a Given Field Don t always offer a better Deal than their old line counterparts. As the choices have multiplied they say so have the number of variables to be considered and questions to be asked before you commit your Money. Consider cd sold by brokers an idea that raises some intriguing possibilities. A Large brokerage fir can comb the country for certificates with attractive yields and then make them available to customers inane of its branches. Wherever it goes the cd carries with it Federal Deposit insurance covering up to $100,000 per account. Since the Bank pays the brokerage firm for it services you normally Don t have to pay any commis Sion to buy a cd from the broker. Now suppose you run into circumstances that make it desirable or necessary for you to Cash in the cd before it matures. If you go directly to the issuing Bank you will have to pay the legendary substantial penalty for Early  but the broker May be Able to circumvent that prob Lem by Selling the cd for you to some other  emphasis in that last sentence however should be placed on the May be  some but not All Bro kers handling cd offer this option. Even if you can unload the cd this Way you May have to sell it at a loss from your Purchase Price if interest rates have risen in the interim. That loss May be increased by fees or Mark Downs charged by the broker in handling the transaction. It also bears remembering that the broker is Only an intermediary. If the issuer of the cd gets into financial difficulty it will be left to you to Deal with the Bank or Federal regulators. On the other Side of the Coin what about buying Mutual funds through a Bank technically Banks Are still legally barred from Selling securities products like these but Many have found ways to do so by forging links with Mutual fund sponsors. But does a Given Bank s selection include All the Best run funds that Are available directly from fun sponsors Are the Bank s funds new lacking performance records to serve As a rough gauge of How the might fare in the future while there May be Many Good reasons to consider buying Mutual fund shares at a Bank says the newsletter Wiesenberger Mutual funds investment report it is almost certain that funds offered through joint ventures will have higher distribution  also it adds trying to resolve statement errors or Purchase sell requests could be a big headache if ban personnel Are not Well versed in the mechanics of handling fund accounts