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.

Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Bucky Katt who wrote (214)	6/18/1998 11:41:00 AM
From: Chip McVickar	Read Replies (1) \| Respond to of 3536

William, Henry in his post #212 mentioned the presures of a "fire sale liquidation" of Japanese banking assets and the problems associated with that course of action. We don't save in this country in the same manner as the Japanese do and in that way I suspect they view their banking system in a different light. We also have a historical 1929 that our pschies can relate too and see that we made it through....but the Japanese do not. Also, on the Gold Monitor thread there has been a series of posts by Ahhaha over the last few weeks that are very interesting... Another key in this whole process is South Korea and North Korea. Do you know if the talks have started there...or when they will start..? Think I will go for a walk....haven't seen the sun here for many days, but right now I can see shadows...thats promising. Chip

To: Bucky Katt who wrote (214)	6/18/1998 12:10:00 PM
From: Oeconomicus	Read Replies (1) \| Respond to of 3536

WJ, "dead debt"? LOL. I really should have taken Latin. Regarding the 125% mortgages, I agree that that phenomenon could present a problem if a recession leads to an inability to service the debts. Then, defaults could lead to further pressure on R/E values as properties are liquidated and lenders tighten their credit requirements. However, consider two mitigating factors. First, I don't see a lot of people just walking away from their homes, even if, on paper, they have no equity. Second, with long-term fixed rates at pretty low levels, the likelihood of payment defaults is much less than if we were going into a recession with everyone sitting on 10% or higher mortgages. Just some thoughts, relevant or not. Regards, Bob