SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Currencies and the Global Capital Markets
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Chip McVickar who wrote (280)6/25/1998 10:05:00 AM
From: Henry Volquardsen  Read Replies (1) of 3536
 
Chip,

You know what happens when you kick over a rock. I particularly like the statement It is not only a matter of protecting the integrity of the banking system in Indoneasia. I got a chuckle out of that, it is not often you hear the Indonesian banking system mentioned in the same sentence as the word integrity ;)

I don't believe it is safe to say that the Indonesians learned the ropes from Japan. The Bank of Japan is a credible regulator and has imposed standards on Japanese banking. The Indonesian central bank is not of the same caliber. We will certainly find some very bad loans in Japan but I doubt we will find the same type of creative accounting and lack of understanding of the nature of the deals than is being found in Indonesia. The Japanese banking system, while screwed up, is much more competent than Indonesia. Not that that is saying much.

As far as your question it is tough to say at what point that comes.
As best as I can estimate the current total outstanding Japanese government debt is around $5 trln or 90% of GDP. Even if they have to fund a $1 trln in loan witeoffs this would only move them to $6 trln or 109%. While this is bad it is lower than several European nations so would be unlikely to exclude Japan from the debt markets.

Henry
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News