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To: Investor2 who wrote (6440)7/30/1998 10:20:00 PM
From: Jim Willie CB  Respond to of 10921
 
140-150 dollaryen is a big deal indirectly... many Asian Tigers have colossal dollar denominated debt... their own currencies are closely linked to the Jyen... Japan is a major trading partner with most... the triangle of borrowing from US and trading with Japan has been another disaster

hence Tiger loans shot up on balance as their economies went into the crapper... widespread problem across Asia now

these Asian Tiger economies had strong growth for the last decade... many of their commercial loans were initiated when dollaryen was at parity, or even under 100 in 1993,94,95... that is 40-50% balloon in balance

shame that currency for a nation will continue in trend until it becomes overvalued or undervalued enough to cause real problems... Japan for years tried to debase its currency when too strong... US did the same... hard to reverse course

/ Jim Willie