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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Rational who wrote (1082)	1/18/1998 7:00:00 PM
From: Stitch	Read Replies (1) \| Respond to of 9980

Sankar, Welcome back. It is very good to see your posts again. You wrote: <<A very unfortunate aspect the SE Asian saga is that the lenders (mostly from wealthy countries) did not care to monitor their borrowers in SE Asia>> I fear the practice was passed on in the form of equally unmonitored loans by the Asian banks to various businesses, projects, and consumers here. You also wrote: <<The best strategy for these countries (as I had advocated a long ago on SI) is to let the lenders go through the standard recovery process for a failed borrower and bite their own bullet.>> I agree but note that undoubtedly, it will lead to much tighter credit policies in the future ( a good thing) which is something the Asian tigers, and especially their noveau riche businessmen, may not be quite used to. In any case, I believe it is highly unlikely we will see 8-9% growth in this region again any time in the forseeable future. And at the moment, what I fear most is a social backlash. What prescriptions could you suggest that may avoid social unrest while the piper is being paid? Best, Stitch

To: Rational who wrote (1082)	1/20/1998 2:34:00 PM
From: Rob S.	Respond to of 9980

Agree. Only some idiot banker would dare to think the public stupid enough to ague that they didn't see what what shaping up. Business people I have talked to over the past few years have all had experiences with the corruption in Malaysia, Indonesia, China, etc. It's a wonder some of their projects got off the ground at all (like commuter aircraft[pun intended]). It does look like there is some pressure being put on the conglomerates to scale back their level of debt. I feel bad about how this crisis is effecting the "small guy" in Asia - the small, well run company that is being frozen out of credit because the conglomerates are locking down most of the liquidity.