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To: Investor2 who wrote (6575)	8/9/1998 1:41:00 AM
From: Kirk ©	Respond to of 42834

Why, given the above scenario, are the emerging country stock markets being punished? Will not the trends you discuss cause the emerging country economies to grow over the long term? I2. This is a complex question. I have been saving some of the best posts I have found that I think explains some of the problem here: suite101.com I make no claim to understand it all, but I try to learn what I can. In a few words, I'd say the problem in Asia is a speculative bubble that has burst. Also, they were buying market share by selling below cost and financing this with inflated assets and now they are paying the price. Mix in a corrupt system that needs a good dose of American accounting practices and the collapse seems reasonable. The steady flow of jobs offshore effecting to keep wages low in the US is a natural consequence of a free World market and would happen without the Asian meltdown as it was happening well before. regards Kirk out

To: Investor2 who wrote (6575)	8/9/1998 3:02:00 AM
From: J-L-S	Respond to of 42834

The emerging country stocks stocks are being punished because their banks are in big trouble. Their banks are in trouble because they were too loose with their money, particularly in (but not limited to) the area of real estate -- technology does not rule, real estate and food rules. Real estate, unlike manufacturing or technology, cannot be exported -- when real estate goes down, you loose money big time. By the way, the Indonesians, like all third world countries, are blaming the U.S for all of their problems -- they are claiming that the U.S. sought to drive down real estate prices so that our rich (people) could more easily purchase their islands for our vacation getaways. I have heard this from an elephant's mouth, as I have worked for a now-defunct Indonesian company as a contractor for the past few years. Nothing could be farther from the truth regarding their demise. Keep in mind, third world countries are third world for good reason: they cannot assess cause and effect and thereby modify their behavior to better creat success -- their prefered thought process, as with a particular gender of the human race, is to find fault elsewhere.