After scanning the overnight Asia news headlines, it sure sounds bleak. If a plateau isn't reached soon, they are going to free fall into oblivion. There are now lots and lots of people and companies in those Asian domestic markets that have lost a TON of money. This is going to pull that whole area into a deep recession, and a lot of skeletons about the Asian way of doing business (handshake deals, corruption, bribes, waste, etc.) are going to surface. It could be pretty ugly. I hate to say this, but I wouldn't be surprised to start hearing of Asian conglomerate executive suicides or indictments in the near future. There will be a public lynching for sure. Then you erode confidence in their financial institutions and corporate way of life, people get nervous, there could be runs on Asian banks (if there haven't been already), the banks could fail, more businesses will fail, downsizing will hit, unemployment goes up, taxes go up, consumption decreases, etc., etc. This has got to stop.
Anyway, sorry so long-winded, and I've probably said most of this before. But, if our market still remains tied to what happens in Asia, sitting on the sidelines could be the best thing to do.
MK |
