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To: Joey Smith who wrote (39896)	11/10/1997 8:34:00 PM
From: Brian Malloy	Respond to of 186894

Joey, I think we are basically saying the same thing (house of cards=domino effect). Although we differ on where it may lead. It is just the potential loss\loss of value in hard assetts like real estate on a country wide basis can have an effect similar to devaluating ones currency except the markets and not the government is doing it. People perceive that they are less well off (and they probably are). Unlike US banks, Asian and European Banks, even the central banks (in general) tend to own rather large blocks of domestic corportations. Should they begin to sell these positions to cover real estate losses then the trend will begin to accelerate. Individuals may have less confidence in the banking system. Perhaps more so in Asia than the US and place some of their cash into Gold as a "traditional" store of wealth in uncertain times. All of this will have a negative effect on the Asian economies as individuals, banks, corporations and government reduce spending to compensate. Brian