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To: fut_trade who wrote (3160)	11/23/1997 7:34:00 PM
From: Rational	Respond to of 27307

Peter: Quite frankly, I am not creating any fiction here. Softbank is a parent holding company and is legally entitled to report gains from investments in common stock of other companies. YHOO is not a subsidiary of Softbank. YHOO is a different company in which Softbank has made an investment. I have no confusion. Most companies and banks in Japan, Korea and other Asian countries have made investments in stocks and were showing profits when the stock prices were rising. Now they are having losses, and banks have lost their capital giving rise to the crises of which Yamaichi is a small pimple in the cancer that has spread through the financial systems in these countries. This process has to unwind: central banks need money to infuse capital to banks; IMF, BOJ or other international agencies will step in and require regulators to enforce international bank capital standards and corporate lending policy. The average leverage ratio of 3:1 (debt:equity) will have to come down to like 1:1 as in the US. How will this happen? Credit crunch. Margin calls!! Sankar