The Editor, Sir:

The move by the Bank Of Jamaica (BOJ) to assist local businesses in the present credit crunch is welcome. This again demonstrates that the present governor and his team have learned from the Jamaican financial meltdown of the late '90s. Also, they are willing to listen and act accordingly.

The Jamaica Stock Exchange (JSE) continues to lose value as investors seek safe haven in protection of their wealth. Information from the market, however, suggests that due more to our established regulatory bodies, only a small percentage of assets owned by Jamaican financial institutions are exposed. If we are to ride out this troubled period successfully, market confidence and not 'doomsday' comments will be a critical factor, not only in the local, but also the global market.

Guarantees

This will involve governments initiating various forms of guarantees to prevent the price of money becoming too expensive and unattractive to investors, thus delaying the period of recovery from the global recession. Some European governments have already started this initiative, which should bring some level of confidence to their markets, as well as the global financial markets.

With the above in mind, I am really disappointed by recent actions of the learned financial analyst Ralston Hyman. His recent press briefing to highlight what he saw as Government's reactions to the USA financial crisis is much to-do about nothing. Any person with the slightest knowledge of finance and/or economics would concede that the financial crisis in the USA has more serious repercussions for developing and dependent economies, such as Jamaica. The present administration, however, was more speaking of the micro than the macroeconomic effects.We are not expecting to experience any of our regulated financial players to fold or go belly-up.

Better than others

It is my belief and probably that of the present administration, that our financial market is better regulated than many First-World financial markets - one of the tangible legacies of the previous administration. Macro variances such as remittances, tourism, foreign direct investment and even overseas employment, will be affected. The magnitude of this effect greatly hinges on our will to restructure and diversify our economy. Countries such as India, China and even Russia, with a growing middle class, should be considered in this approach.

Ralston, now is not the time to be crying wolf, wolf. You should have been doing this some two years ago at the beginning of the world oil and food crises. Then, many of you did not and still cannot see the link between the September 11 incident and the moving of funds into oil and metal markets. Instead, you guys blamed it on China's development. This is a shallow way of thinking.

I am, etc.,

MICHAEL CLARKE

mm2clarke@yahoo.com