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Technology Stocks : C-Cube
CUBE 37.54+1.5%Nov 7 9:30 AM EST
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To: JPM who wrote (26358)12/9/1997 2:00:00 AM
From: Rarebird  Read Replies (1) of 50808
 
Another Tech Company blames Asia for poor earnings: Cube next?

What concerns me most domestically in the good old USA nowadays is the Japanese market.Many of those Japanese banks and insurance companies are in terrible condition and they have loaned more money to the Asian Tigers than anyone. I expect many of these loans will go into default. A major source of capitol for the Japenese institutions has been their unrealized gains from holdings of stock in other Japenese companies. It's common knowledge that at 16,000 on the Nikkei average, most of these unrealized gains will disappear. Without these unrealized gains, many Japenese institutions may have trouble with their capitol ratios from the International Bank of Settlements. If the Nikkei average falls below 15,000 and stays there for some time, this will spell real big trouble for the entire Japenese economy. The Japenese banks and insurance companies may be forced to sell U.S. Treasury securities. Of course, no one on this thread who is long the Ice Cube would like to consider how disastrous this would be for the US market, as it could cause US bond interest rates to escalate. Nirvana? I've been 75% long this market since 1982 but I see a real fierce bear market in 98. We may hit 10,000 on the Dow first, but watch out below.
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