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.

Strategies & Market Trends : HONG KONG -- Ignore unavailable to you. Want to Upgrade?

To: Frodo Baxter who wrote (2162)	8/26/1998 9:13:00 AM
From: tom	Read Replies (1) \| Respond to of 2951

Dollarisation is an interesting concept and I have mentioned it several times before on this thread (or possibly the Asia Forum). However, I have come to the conclusion that the rot in Hong Kong is so deep that dollarisation will do little to help them. Even if they use US$, asset prices will still need to correct as the fundamental situation has not changed (ie fears of the banking system's solvency/liquidity). HK borrowers would still need to pay a big premium to borrow in US$. Apparently China has discussed the possibility of dollarisation and would be open to the idea if the situation warranted such drastic action.