Qualcomm Incorporated (QCOM) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 182.37

+3.6%

2:55 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: JMD who wrote (6421)	12/14/1997 12:21:00 PM
From: dougjn	Read Replies (1) of 152472

Financial Times,London: <<South Korea: Who blinks first? FRIDAY DECEMBER 12 1997 South Korea is playing a dangerous game of chicken. Scarcely is the ink dry on last week's $57bn International Monetary Fund rescue package than the country is asking for disbursements to be accelerated. If Korea was implementing the IMF's conditions with vigour, such a request might be reasonable. But it gives the impression of backsliding. So how can Korea hope to get its way? Only because it thinks the IMF will be scared that if Korea defaults on its foreign debt the rest of the world will be dragged down with it. Korea is used to winning its way through brinkmanship, but this time it may be miscalculating. A default would, indeed, have nasty knock-on effects: exposed foreign banks would have to make provisions; the risk premium for other newly industrialised or emerging countries would rise; and the earnings of multinationals exposed to Korea would be depressed. But none of this would cause a global financial collapse. By contrast, the impact on Korea itself would be devastating. Apart from damaging its credit-rating for decades, a default would plunge its economy into further immediate trouble. Financing imports, for example, would become extremely tricky. The IMF should call Korea's bluff and refuse further funds until the country shows it is implementing the programme properly. If Korea does default, at least other countries will know the IMF means business.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next