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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Thomas M. who wrote (24330)	10/29/1997 10:44:00 AM
From: Sam Citron	Respond to of 132070

Tom, Yes, she appears to be speculating that the recent turmoil in Asia will be confined to their markets, will have little impact upon their economies, and will have even less effect upon US corporate earnings. I suppose that she might reason that the '87 market crash in US did little to damage our economy, just took a little excess out of the system. If Asian economies are not fundamentally affected by their market turmoil, then she might suppose that US multinationals have little reason to fear any fallout. I think she may be wrong because underlying the Asian turmoil are (or were) overheated economies and overvalued currencies. Demand for imports there will inevitably be reduced. (Not merely demand for Manhattan or South Hampton real estate) Also, in Thailand, for example, "main street" has certainly been affected by the recession there. Unemployment has risen in the region as hotel and restaurants, for example, have suffered. It would be good to see a Barton Biggs/Abby Joseph Cohen debate on this subject, along with an East Asia economist from Harvard and a Taiwan hedge fund manager thrown in for good measure. Will e-mail this suggestion to Charlie Rose.<g> SC