DD,
This will not end until the Asian thing plays itself out.
RETRENCHING
+ SOUTH KOREA, the beneficiary of a huge IMF-brokered rescue package
earlier this month, seemed sicker than ever. Five more merchant banks
were closed down, and the government took control of two big banks,
SeoulBank and Korea First. Under the Fund's pressure, it agreed to open
the door a little wider to such foreign investors as might be tempted
into the stricken economy. Another big chaebol, Halla Group, defaulted
on its debts. Moody's, a credit rating agency, downgraded 31 Korean
financial institutions.
+ On four consecutive days the South Korean WON sank by its 10% daily
limit, plumbing record lows against the dollar. So did the Indonesian
RUPIAH, after news that 76-year-old President Suharto needed a rest.
The ringgit recovered after Malaysia said it would slash federal
spending.
+ THAILAND said that only two of its 58 suspended finance companies would
re-emerge intact. The stockmarket and the currency responded by diving.
+ THE JAPANESE ECONOMY is at a standstill, admitted the Economic Planning
Agency. The country's trade surplus trebled in October to Yen1.08
trillion ($8.9 billion) as the weaker yen and gloomy consumers at home
continued to fuel a growth in exports. The Japanese government
meanwhile seemed unable to decide exactly how to reform its debt-laden
banking sector. A committee due to unveil its proposals on December
10th is now to report on the 16th.
This stuff is deadly to the Tech Sector for now. What no one is focused on is that China demand for Technology is growing at a 18% rate anually. If that falters I will really get nervous. But what else is new the news could not be worse only worser. Buy when the blood is in the streets. 5K more at 17 holding my breath
DrRisk |
