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To: Dayuhan who wrote (2155)	8/25/1998 5:41:00 AM
From: Tom	Respond to of 2951

Steve: Agree.

To: Dayuhan who wrote (2155)	8/25/1998 7:49:00 AM
From: Tom	Read Replies (1) \| Respond to of 2951

Steve: One more related issue. Instead of attempting to "make good" on such extensive amounts of private sector debt, many of the enterprises should have folded, period. Bad investment. Tough luck. Bye-bye. It's the only way. Well, in-part at least. We've beat this around here on prior occasions, but I think it's still worthy of occasional comment. Remember that some of these nations had their public sector financing in order. The private sector was the problem. And from whence did the private sector financing come? Who provided the credit line? Those that provide the financing are well aware that these nations require offshore monies to facilitate economic expansion. It only follows that the financiers are just as certain that they will be accommodated when a bubble bursts. Though such may not always be the case, the process will continue as long as a similar situation exists. I realise that some underwriting, and participation therein, may be difficult to follow. But not to the degree that one could not judge that certain of the financing was of a very high risk nature. I also consider that some of what was borrowed is not being returned in the equivalent currency unit (i.e. dollar-for-dollar). Never-the-less, the creditors should make their demands and then be compensated in accordance with a thorough review of the rating assigned the original obligation. A bank or other lending institution that had developed a worst-case scenario returning 70 cents on every dollar lent, may only realise 50 cents once some of the higher risk lending packages are voided under an international review. The creditor would also continue to carry the loan as an asset, but at a value that would be reassessed immediately, then again periodically (e.g. semi-annually). The nature of the review would override any contrary domestic legislation. Anyway, I can't help but feel that this type of "high finance" is going to get this nation into a whole heap of trouble again one day. And Americans ought to be reminded, or made aware, of the fact that the money being lent does not belong to the banks. It's our money!