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: Ramsey Su who wrote (2331)	9/17/1998 11:04:00 PM
From: Ron Bower	Read Replies (1) \| Respond to of 2951

Ramsey, "Anyone wants to venture a guess as to what will happen to all the global markets if HK fails? It could be the start of a world depression." I don't understand what would make you say this. I'm not reading anything to indicate the situation in HK is anywhere near that bad. Most of the property developers are having reduced profits, not massive losses. Most of the banks are conservatively solvent compared to the rest of Asia, and to the US. As I understand it, HK home buyers are required to put up 30% down payment. Leaves a lot of room on the mortgage. In the US, one can go as low as 5% in certain situations. In addition to US bank exposure in the global economy, the US consumer and mortgage debt exposure puts US banks much more at risk from a recessionary period. US property values are inflated just as those in HK were. The worry isn't HK, but the US. JMHO, Ron