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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?


To: Jerry Olson who wrote (13768)11/8/1997 3:25:00 PM
From: IQBAL LATIF  Read Replies (1) | Respond to of 50167
 
On collapse of global banking and equity markets- a reply on BK

Brad-Banks don't get in trouble due to slow down in economies they get in trouble when they lend on 'bubble properties' like a 100sq -m apartment for 1.5 m $ and the borrower uses that money to buy highly inflated property stocks on Japanese and HK stock exchange- this is the story of Nekkei and HK 60 % of HSI cap is property cap. Can you imagine Wall Street 60% cap attributed to real estate sector yielding less then 3%. This rationalisation of prices saves the world from future major catactrophes and it is only because of market forward measuring sensors that we can have such corrections whereever excesses are made- markets who are not expose to bubble will become dearer and investors will soon realise as they start making distinction btw exorbitantly expensive markets and markets based on global proprietry rights of products like Pentiums and Windows.