Ref: yours Stitch...never, never take your eye off the ball here that it was governments in league with the "old boy" network of cheap money, "friends" and heavily controlled domestic markets that created this gigantic asset bubble in Asia.
If I can quote the Wall Street Journal article, "...such asset swaps are making some chaebols even more powerful at home and in international markets in certain industries. For example, a recently announced merger between the Hyundai and LG groups' semiconductor businesses will create the world's second-largest memory-chip maker -- after Samsung. Hyundai's acquisition of Kia Motors gives that chaebol more than 60% of the domestic vehicle market".
I may be missing something. Is this a country that is embracing free markets? Is this a country to invest in with great potential?
Nothwithstanding all the vulture investors here rushing to Asia to buy sold down assets in Asia... something greusome is happening here.
No one is getting it. The sum total is....
This is simply total bullshit; and, this reshuffling of assets by bankrupt famlies is like all the Korean grocery store owners in New York taking every rotten orange in the five bouroughs and then saying they have developed the best orange juice in the world.
Well, the truth is...they have crappy input.
They are, in addition, total unrepentant liars.
They have a crappy product.
They have a glutted market.
Am I missing something?
Who is buying into this Korea story except the Matthews funds? and, maybe, Wilbur Ross and his following of uninformed institutional vulture investors here in New York?
I simply don't understand the future here. All these vulture investor people are going to simply be crushed in the ongoing world deflation. What do people think is happening here?
We have an asset bubble here now in the US and Europe. Bubbles pop. And then, and then.... the list of international financial adventures in gloom is just getting too long to even keep up with.
Who is going to buy all this stuff that Korea, China, Thailand, Japan and the etc's of Asia, need to get out from their financial black holes? Japan is still broke. Their pension funds have disappeared, vaporized.
The answer is the leverage of 10 to one or more of alot of Asian business will be written off. The small vultures wil be eaten by bigger beakier vultures.
On another subject the Saudi's are now borrowing from Abu Dhabai - the only gulf state to have any money- because Saudi Arabia has a growing financial black hole situation looming in the accounts payable department. All the gulfies are broke, Kuwait, Oman, etc. Presumably, the European and American bankers are all tapped out.
The irony here. The howling manic irony. Remember 20 years ago when the Gulfies were swimming in money and the bankers were on their knees creeping all over the carpets of the brand new Riyadh Hyatt begging for their money?
Tell me because you are brighter than I am...circling back to Korea here... where is the liquidity going to come from to buy all these Huyundai cars?
Sorry to go on. We are now at a point of Robert Rubin decides to take a vacation, or have a heart problem, the world's financial system will really begin to wheeze.
My best to you,
Clark
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