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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Rmn who wrote (13211)	1/16/1998 11:00:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 18056

Ramsey, I think that Japanese banks have not even started to mark to market their loan exposure to the rim. They are the largest lenders in the region. I do not know which part of that debt is in local currencies and which part is pegged to some international reserve currency (Yen or Dollar), but one thing I am sure of, those loans that are in local currencies are worth less than half of what they were last quarter, and those that are pegged to international reserves, are not very likely to be repaid. I think that their exposure is in excess of $100 billion or 13 trillion yen. The new found security blanket (marking to market "low cost" real estate) of 4 to 6 trillion yen, will barely cover their toes. That is when the Koi revaluation will come into play (g). After that, we will get "Defaltion" (please see a former post for definition). Zeev Zeev