Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: John Hunt who wrote (15214)	3/26/1998 8:50:00 PM
From: bearshark	Read Replies (1) \| Respond to of 18056

John: There was an article about two weeks ago in which China had said they would like a nice controlled devaluation of their currency--just a little controlled one at the end of this year. Hmmm--nice trick. Did you notice that? I do not remember seeing it posted.

To: John Hunt who wrote (15214)	3/26/1998 9:27:00 PM
From: Stitch	Respond to of 18056

John, Re; Asian Banking Sector Bank sector woes throughout Asia are becoming increasingly worrying as the level of bad debts grows. Here in Malaysia there was an article in the paper that said the government was going to allow finance companies fail if they didn't merge into stronger entities. Basically they have given the sector until march 31 to work out mergers before the central bank "lowers the boom" on institutions that exceed ratios. Where will liquidity come from without bank loans? There has been no return of off-shore money as foreign investors have too much to worry about in terms of local policy and transparency. Thailand and Korea have bitten the IMF bullet but still have a long way to go to reattract foreign investment. The Malaysian Gov't (which so far has decided to go it alone without IMF involvement) was expected to reduce the regulations on foreign ownership of banks on Tuesday in a speech by Anwar but it didn't happen. I expected to see local stocks tank but they have only languished a bit. Still malaysia has instituted a lot of regulatory changes, including lifting local favoritism laws for so-called Bumi Puteras, enacting bank reforms, increasing some transparency, and significantly reducing gov't spending rates and increasing interest rates. I continue to look for export led, cash heavy companies. Best, Stitch