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

To: Stitch who wrote (3631)	5/16/1998 3:41:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 9980

Stitch, I think that people are missing the point. There has been a huge build up of excess capacity (that is what fueled the rapid growth in the last few decades), now comes a point of dislocation, when this overcapacity must be either taken off line (assets losses and unemployment) or find ways to stimulate demand to absorb as rapidly this over capacity of productive means. This was the reason that I (arrogantly <G>) urged the Japanese government to engage in drastic and massive internal consumption growth. They are the only one in that region that have the money statched away to do it. Once the current problems are resolved and more balance between demand and supply is established, our brothers in those countries should learn to rely a little less on excessive export and give a taste of the "good life" to their own populations. There is only so much of this export that the US can absorb before it itself will choke on its negative balance of trade. Zeev