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To: lorne who wrote (6338)	1/20/1998 5:12:00 PM
From: PaulM	Respond to of 117029

Lorne, it should start a race to sell the Rupiah. Lenders paid now in Rupiah will sell for dollars the first chance they get. That will cause the Rupiah to plumett and will leave those taking the "dollars tomorrow" option holding the bag as payemt in dollars become impossible. It's exactly this kind of "every man for himself" menatility that the U.S. was trying to prevent in S. Korea by encouraging the lenders to work together, rather than purely in their own interest. No immediate effect on the $US except insofar as U.S. bank losses translate into a weaker U.S. economy and therefore a changed perception of its currency. And then again everyone else is taking losses in Asia too.