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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (28579)	5/28/1998 1:53:00 AM
From: yard_man	Respond to of 132070

Message 4616634 Exposure to bad loans in Asia -- derivatives. Don't worry they are hedged real good. <g>

To: Skeeter Bug who wrote (28579)	5/28/1998 10:50:00 AM
From: Knighty Tin	Respond to of 132070

SB, Some of the negotiations with bankrupt banks and the IMF may require that Chaste actually admit that their assets are non-performing. This is unlikely, as our regulators usually allow banks to pretend that non-performing assets are making money. Also, if the intl. banking crisis, caused by the bloated dollar, continues, it may make no difference to pretend you are earning money when your cash flow is totally negative. Then, rates could go up. Derivatives, even with good banks, could and probably will, become the next third world debt/real estate/energy/mortgage derivative crisis in the industry. The public might actually start viewing annual writeoffs of zillions of dollars as a negative. Lots of things could go wrong. One of more of them will. MB