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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (14446)	9/2/1998 1:32:00 AM
From: dougjn	Read Replies (1) \| Respond to of 152472

Maurice--- If the Japanese banking system has a rolling, unstopped collapse, I promise you one thing. You will wish you had sold Qcom or anything else before it started. And bought back in when the panic and then gloom was peaking. Which might take some while before the full affect was in. The global contraction of credit would be awful. And lead to some sort of depression. Including in the homeland of the Q. And the G*. The hope and nervous expectation is it won't be let go that far. I agree that just bailing them out is not the right way. You protect depositors and counter parties. Bank shareholders at the worst banks get wiped out. Bad loans of failed institutions are assumed by the government (your buying the bank for 1 yen), which forecloses on the property and then conducts orderly sales - to place it in hands that can make/keep it a productive asset, and who have the highest and best use for it in the current market environment. That's how the US cleaned up its savings and loan crisis. Given the global implications, however, the whole banking industry was subsidized for some while by Greenspan, by allowing a huge spread between the fed lending rates to banks, and the bank lending rates. It was necessary to rebuild capital and prevent a global meltdown. You know. Like 1929. We are facing the same risk again, thanks to Japan. Now maybe you think that's no big deal. I think it's likely to poorly affect those who are long stocks, not to mention long and margined. Whether maxed out or not. Not to mention the wee bit of pain all sorts of working people and people of most all stripes would feel. Something to be avoided, at nearly all costs. Doug