That' interesting news on Korea, everyone turning in their gold and jewels to the government. From what little I know about Korea there has to be more to this story. I know what 'crashes' are like, having lived in Houston, Texas during the oil crash. The "Tech crash" of 97-98 has some common characteristics.
The price of oil crashed, in simple terms, because there was a lot more oil than anyone had imagined, and technology made it possible to find and product in abundance. Chip prices, like oil has fallen partly because there are lots more chip plants, this coupled with an obvious technology transistion; chips, drives, databases, you name it are becoming cheaper. So the debt that was taken based on now old assumptions becomes very expensive and emergency measures become necessary (my oil crash days in Saudi working). Korea should take the international loans, its a good deal, Houston did well when the Feds took over their banks and loads of new buildings. We wouldn't have the buildings otherwise, now the Koreans have a modern economy. Everything will work out, just think how much more money the world will have to loan them when the two Koreas combine sometime next century. I just wish the price of their cars would come down 50% at the local car lot, their cars started a little rough, but are great now. Who is Foster Freese? We don't get much news here in Texas, but gas is .95 a gallon (mostly tax). |
