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To: bdog who wrote (11586)	6/17/1998 12:26:00 PM
From: Ramsey Su	Read Replies (2) \| Respond to of 152472

bdog, there was a little deal that made no headlines earlier this week so I did not save the article. Don't hold me to the exact details but I think you will get my point. Basically, a number of banks in Japan loaned China's regional government around Shanghai something like $600 million in the 80s. The loan is in default and the borrowers don't want to pay. Japan asked China central government to intervene. They just settled for approximately 60 cents on the dollar. The article did not say what happened to the accrued interest. This is the type of stuff that Japan needs to start doing to clean up the books. Some loans, such as those to Indonesian, are for all practical purposes, unsecured and dead. Some loans are secured by assets that are hopelessly below the loan amount. What do you think will happen to Japan's economy when Japan, as per US instructions, start addressing these bad loan problems? Major recession, deflation, unemployment, etc etc etc. Ramsey