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To: Tunica Albuginea who wrote (43160)	12/24/1997 11:21:00 AM
From: Paul Fiondella	Respond to of 186894

Tunica, here are some things to consider about Asia First you are right to watch very carefully JAPAN. Most of the scrambling being done now by the IMF and World Bank is to prevent a Korean default this month. Unfortunately nothing they can do at this point will reassure Korean investors who have pulled out of their market and foriegn lender who have looked at the Moody's etc. downgrades of Korean debt. It seems to me that the only prudent thing to do at this point is to reschedule Korea's foriegn debt. Now turning to the US. There is flexiblity in the executive branch since the US Treasury has as vast amount of currency in foriegn trading accounts where it has some discretion to use the money without Congressional approval. The problem here is not Congressional opposition to a bailout. (Which I also am opposed to---the speculators should be made to take some losses and I don't believe in bailing out Japanese banks with US money). The problem is in the executive branch. The Clinton administration simply hasn't seen this crisis clearly. I sometimes imagine that if we had the Cuban missile crisis today Clinton would cover up the existence of the missiles rather than face the decisions that would have to be made. Japan is even worse at facing this crisis. Now turning toward investments. My gut instinct is as follows: If we do not see a meltdown in JApan then this crisis will be prolonged not acute. That means that you must look to earnings reports with regard to your investments. What I read between the lines on the Street especially as I watch MSFT sink is an attempt on low volume to drive the market down on bad news. BEWARE OF THE STREET.