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Strategies & Market Trends : Asia Forum
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To: Rational who wrote (691)1/11/1998 7:32:00 PM
From: Rob S.  Read Replies (1) of 9980
 
The basic fact is that the Asian problem stems from foolish national and corporate strategies to use huge debt to build massive plants and infrastructure on the assumption that the debts would eventually be paid off from profits on an equaly massive scale. This jump-start of third-world enconomies into 21st century economies has proven to be overly grandiose and simplistic thinking - just the kind of thinking you get from top-down, beureaucratic governments and corrupt quasi-governmental/corporate structures. The basic fact is that the majority of S. Korean, Malaysian, etc. companies have massive debt; Smasung for instance has 8X debt to equity ratio and it is thought to be more solid than many others.

I agree that the IMF is run by international banking interests and that their goal is to gain control over the banking institutions and corporate assets they will help to insure. However, the problem didn't start with the IMF.

I think the IMF and Japan, German & USA private banks should pull out of subsidising Asian debt altogther and let Malaysia and S. Korean companies collapse!

Then you will see how worthless all those assets realy are without the support of sound policies of some sort - sound policies certainly haven't developed on their own up to this point.
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