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To: SKIP PAUL who wrote (6374)	12/13/1997 11:52:00 AM
From: JMD	Read Replies (1) \| Respond to of 152472

Skip, your statement ' . . .caused almost no dislocation in the US economy' is unlikely to be sympathetically received by the many thousands who lost their homes, life's savings, careers, and marriages as a result of the S&L scandal. Capital is precious: when it is destroyed in mega billion dollar quantites, the pain is very real and very intense. It indeed is almost profane to characterize it as "dislocation", but to suggest that it was insignificant is plainly, factually, and massively wrong. Regards, Mike Doyle

To: SKIP PAUL who wrote (6374)	12/13/1997 12:12:00 PM
From: Ramsey Su	Read Replies (3) \| Respond to of 152472

Skip, US problem was more than a few years ago. I believe FIRREA was approved by congress back in 1988, about the same stage where Japan is now. Even though I was not actively watching my portfolio during the 80s, I don't remember them being robust years for the stock market, not to mention the infamous 1987 black Monday. I don't have time to do a search but I think the stock market had averaged in the single digit all through the 80s, including the early 90s. As for dislocation in the US Economy, tell that to the thousands of laid off workers in the financial sector. Have you heard the term corporate downsizing? The old IBM "policy" of never laying off employees is about the closest it comes to the Japanese corporate mentality. There will be a lot more bowing and apologies from the Japanese CEOs in the next few months, if not years. Ramsey

To: SKIP PAUL who wrote (6374)	12/15/1997 12:17:00 PM
From: Clarksterh	Read Replies (1) \| Respond to of 152472

Skip - "The US had a similar problem a few years ago" - Similar in kind, but not in quantity. The percent of US bad loans during the savings and loan crisis was 1 or 2 percent of national debt. For Korea and Japan it is much, much bigger. 20 or 30% for Korea, and no one really knows for Japan. In addition, Korea has the additional problem, just recently come to light, that they used lots of short term debt financed in dollars, which are now worth twice as many won. This means they cannot roll over their debt, which in turn means that their economy might well come to a skreeching halt tommorrow. As for the impact on the US and other countries, the problem is that to the extent that the US and other coutries, (mainly Japan I suspect) made loans, these become non-performing loans for those countries. Thus, a domino effect. That is the real concern in my view. Clark