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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: sepku who wrote (27344)	12/10/1997 12:11:00 PM
From: Daniel G. DeBusschere	Read Replies (1) \| Respond to of 61433

Your comments on the Asian situation were on topic not off topic. We are dealing with a lot of negative perception and it seems that most people do not bother to look at the facts such as the ones you pointed out. Therefore, the negative perception crowd provides very good buying opportunities. The old man of Vanguard Mutual funds was on TV last night with their policy "stay the course" and don't overreact to the current crisis.

To: sepku who wrote (27344)	12/10/1997 2:42:00 PM
From: Matt Webster	Read Replies (2) \| Respond to of 61433

<<Also, I have to wonder whether the Asian economies will lower interest rates as they get further pressed...this may encourage borrowing by corporations in order to invest in the technology they need -- after all, high-tech>> No, Asian economies cannot lower interest rates. Nor can they borrow much. This is the problem, remember? If they lower interest rates, the currencies will again be hit. Their weaker local currencies will not be able to buy as much American equipment, etc., etc. We should instead hope the U.S. lowers interest rates, which makes our exports and dollars cheapers. In Korea, anyway, I think the IMF has mandated a tight money policy and new banking standards that require Korean banks to hold reserves and account for loans using the stricter Basle standard. This won't help Korean semis get money cheaply. All that said, I think a small U.S. rate reduction is in the cards in the next six months, especially once quarterly earnings come in, the market stays flat or slips a bit and retail sales in December do not exhibit signs of inflation. My own guess is that this Christmas will be a bit slower than usual and there won't be a huge inflation threat. Matt