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 : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: Defrocked who wrote (2697)	7/1/1998 10:47:00 AM
From: yard_man	Respond to of 86076

It is of course obvious that Buffet thought the shares of GRN, discounting its future prospects, were worth more than BRK -- just as someone holding one currency exchanges it for another which is perceived as a better store of value. What is he telling us about the likes of KO and other shares that BRK currently holds?

To: Defrocked who wrote (2697)	7/1/1998 2:45:00 PM
From: Investor2	Respond to of 86076

Re: "The question in my mind is when will holders of equity shares realize their "currency" [i.e., stock] is inflated and as a normal reaction begin spending that inflated currency??? IMO, the average Joe investor will realize his "currency" is inflated only after it ceases to be inflated. Best wishes, I2

To: Defrocked who wrote (2697)	7/1/1998 6:35:00 PM
From: Joseph G.	Respond to of 86076

I'm not sure "informed investor" assumption based theories are applicable in present situation, see e. g. the following statements: Message 5077442

To: Defrocked who wrote (2697)	7/5/1998 10:58:00 PM
From: Joseph G.	Read Replies (1) \| Respond to of 86076

<<TOKYO, July 6 (Reuters) - Point a finger at any of the now-humbled Asian economies and you'll find the same problem at the heart of their woes -- the banking system. While the details differ from country to country, the symptoms are mostly all the same: bad loans collateralised with real estate of diminished value, lax supervision and accounting, a staggering need for capital and more banks than depositors or borrowers need. Throw in financial bureaucrats and politicians anxious to protect their fiefdoms or deliver to their constituencies and it's no wonder the region's banking system is in chaos.>> Comment: sounds like a description of US banks, just wait till they're humbled too. ........... <<This puts a stranglehold on the flow of liquidity Asia's banks desperately need.''Japanese banks are beginning to retreat from Asia,'' says Takeshi Nobehara, general manager at the Japan Research Institute and an adviser to some of the country's banks. ''Japanese banks won't roll over their short-term loans to the region, creating risk for local banks.'' How much risk? About $124 billion, or roughly a third of all international lending to Asia, according to the BIS.>>