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

To: Mike M2 who wrote (14275)	2/18/1998 11:04:00 AM
From: Cynic 2005	Read Replies (1) \| Respond to of 18056

Mike, Absent the massive flood of money and credit emanating from central banks around the world that poured into Asia, the Asian markets would not have crashed. The essential cause of every financial crash is prior monetary inflation and credit expansion. I took particular confort in that statement, because that is how I too saw it. My brother put that bluntly - it is the financial gimmics played by the Western (G7) world - Japan included. Of course, to some extent he is ignorant. But I take the view that it is perhaps the ignorance and/or incompetence of the central banks around the world (i.e. loose credit) that may have caused the Asian mess. I can easily see this issue transpiring in to some sort of a xenophobia among the people of affected Asian nations. One thing for sure, they may see it as a western conspiracy against their prosperity but they have no idea about the fact that these "conspirators" are in fact as stupid as their own politicians and incompetent businessmen.