Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (13929)	12/30/1997 10:24:00 AM
From: Gottfried	Respond to of 70976

Brian, * OT Korea * >> remember here [in the US]in the late 80's and the layoffs that came daily and look where we are now.<< First of all let me emphasize that the increase in unemployment (to 5+%) and decrease in growth (1-2% negative) projected by the Koreans themselves don't look nearly as bad as Chicken Little had told us. The incentive for Korea to make the changes is their desire to remain an economic world power. You can't be a world power shackled to the IMF and foreign banks. President-elect Kim is a friend of labor, which will help him institute the needed reforms. They are in the position of the homeowner who is dying to burn the mortgage. A few months ago our unemployment rate was over 5% and we worried that it shouldn't go lower. Germany would kill for such a low rate. Compare to Mexico's troubles in 1995/6 when conditions were much worse there. I think the Koreans are relatively disciplined and will pull it off. Off course, if they ever reunify with the North, all bets are off (compare to Germany). I think it has served the interests of our powers-that-be to exxagerate the Korean problems. Greenspan hasn't needed to raise interest rates, the market here cooled off etc. GM