To: Paul Berliner who wrote (5758 ) 8/21/1998 7:33:00 PM From: Bosco Respond to
Dear Paul - thanks for the response. Ok, 1st, I did not have any substantiation; however, I doubt that there is a prohibition of all land sales. Rather, it may be the case that the HK regional govt has suspended auctioning of *new* land [I could be wrong <g>.] A matter of semantic maybe, but it is more pragmatic than clever. In a way, both of us - and my guess is that most people in the thread - agree that things may get worse before it gets any better [in HK.] I simply do not see the HKMA [used interchangeable with the HK regional govt in this post for practical purposes] thinks that is the way to resolve the region economic problems. While I ve only ancedotal information, the sectors hit hardest [aside from RE] are service oriented [well, if you guys are into gastronomic delight, you'll have a field day these days <vbg>.] Also, just how can de-peggimg [with a likelihood of going down] would affect the property values? Finally, let's assume that de-pegging does provide a *temporary* fix [is there such a thing called a quick fix?] then what? Most of the top adminstrators in the HK regional govt are well versed in economic theories from some of the finest institutions [note: I understand that education does not necessarily resolve all problems,] they know very well somewhere somehow someone has to put a stop of the deflationary spiral. Otherwise, more devaluations from the same countries. Had HKMA wanted a quick fix, it would have de-pegged a long time ago. If indeed it decided to do so now, its motive probably would less a quick fix than a throwing in the towel b/c of the overwhelming weakness of the HKD.
