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Technology Stocks : QUANTUM -- Ignore unavailable to you. Want to Upgrade?

To: Rational who wrote (5557)	11/23/1997 12:21:00 AM
From: Dwight E. Karlsen	Read Replies (1) \| Respond to of 9124

I first picked up on the trouble when I happened to be up late Thursday night, and saw this story: Friday November 21, 4:24 am Eastern Time Company Press Release S&P Puts Yamaichi Securities On CreditWatch - Negative TOKYO--(BUSINESS WIRE)--Standard & Poor's CreditWire 11/21/97-- Standard & Poor's today placed the triple-'B'-minus long-term counterparty rating of Yamaichi Securities Co. Ltd. on CreditWatch with negative implications. The CreditWatch placement reflects increased concerns about the company's business prospects amid unstable domestic market conditions and uncertainty about the timing of Japan's economic recovery. Given Yamaichi's already diminished financial capacity, the firm will be seriously challenged by Japan's highly volatile stock market, sluggish business activity, and growing caution among investors. Standard & Poor's is concerned that a prolonged drop in the company's market position could weaken its business franchise over the long term. Yamaichi's creditworthiness, nevertheless, is supported by its adequate capital base. Standard & Poor's will be meeting with Yamaichi's management shortly to discuss the firm's approach to its adverse operating environment and its strategy to regain customer confidence. RATING ON CREDITWATCH - NEGATIVE TO FROM Yamaichi Securities Co. Ltd. Counterparty credit rtg BBB-/Watch Neg/-- BBB-/Negative/--

To: Rational who wrote (5557)	11/23/1997 12:37:00 AM
From: Rob S.	Read Replies (1) \| Respond to of 9124

Many economists and monetarists (what, specialists for that too?), have said that Japan and the rest of Asia needs to let their financial institutions figure their own way out of their bad debt situations rather than go in and crop them up as they have done in the past. The problem with cropping them up is that the "good" institutions end up absorbing the debt from the lousy ones. In the long run that just encourages faulty loan practices among a few to spoil things. I guess that "tough love" type of cure will work as long as the ov overall crisis is realy not that deep.