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Technology Stocks : C-Cube
CUBE 37.04+2.1%3:48 PM EST
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To: Rarebird who wrote (27165)12/29/1997 5:50:00 AM
From: CPAMarty  Read Replies (1) of 50808
 
If i understand you correctly there are two main reasons for the bear market in 1998;
1. You said "The companies ( especially Taiwanese, Japanese and Korean ) wanted to get market share at any cost without looking at profitability or how to pay back the debt. The local banks borrowed very heavily and lent to these companies, who ultimately could not pay back the loans as promised. Banks, who had borrowed overseas and lent to these companies, lost their capital while protecting their domestic customers under the government's influence."
Assuming that the Taiwanese, Japanese & Korean Banks wanted to repeat the mistake that you cite; do you think the IMF will let them?
(esp. in Korea) Assuming that this trend of borrowing to increase market share has been ended by this crisis, i think this might actually be a positive for the U.S. market for 1998.
2. You are predicting that interests rates will rise in the second half of 1998.
Alot of people have been predicting that rates would be going up for a long time, what makes your prediction different the theirs? What will the South Eastern horders invest their money in after they pull it out of the USA? Their Banks?

I do think that the high U S dollar will hurt exports, however since we import more than we export, there will be an offsetting increase in importers' earnings.
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