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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets!
LRCX 150.32+5.4%Nov 24 3:59 PM EST

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To: TI2, TechInvestorToo who wrote (4877)2/17/1998 11:58:00 AM
From: Clarksterh  Read Replies (1) of 10921
 
Taiwan vs Korea and Japan:

The primary differences are several, and the two biggest are probably:

1) The biggest difference is that Taiwan allows companies to go bankrupt. So companies are much more careful when they borrow, because if they over extend themselves, they will go bust. There was recently a very influencial economics paper on this subject.

2) Another big difference compared with much of SEA (although not Japan) is that Taiwan has very little foreign denominated debt. Therefore the positive feedback loop that occurred in the rest of SEA when their currencies fell is not possible in Taiwan.

Clark
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