To: Mark Oliver who wrote (2861 ) 3/17/1998 6:51:00 AM From: Gus Read Replies (2) | Respond to
It's always difficult to call a bottom on these things, Mark. Purely as a matter of self-preservation, I am operating under the assumption that the Chinese will have to devalue their currency sooner or better yet, later. There are reported rumors that the US is holding out WTO (World Trade Organization) membership as an enticement for China not to devalue its currency while its Asian neighbors are still recovering from the aftershocks of the current crisis. Whatever the timing, the consensus is that the devaluation of the Chinese currency could set off another round of destabilizing region-wide devaluations. could have used fewer dollars to generate the same amount of local currencies, they should include the mark to market losses under operating expenses instead of other expenses especially since the local currency equivalent of those contracted dollars are booked as expenses (read: impact on operating earnings) using the presumably higher currency rates. But what about those expenses that get depreciated or amortized over a number of years? Obviously, you distort the accounting when you immediately expense those items that should be depreciated or amortized.
