Sankar, I read it, I just think it is the government trying to force something unpleasant down the lender throats and they are resisting as much as they can taking the bitter medicine. It is very similar, in essence with the situation with the Japanese banks refusing to recognize rtheir bad debts and write these downs, eventually, and particularly when the government help these banks to continue the tealth book keeping practice, everyone suffers, since mis allocation of resources is never good for an economy. Eventually, I think the lenders to SEA will have to take a sizeable blood bath, many assets will change hands at distress pricing, and the SEA economy will revive and come roaring ahead again. That of course, is conditional on taking the bitter pill now and not in 10 years as Japan would like to teach the region to do.
Zeev |
