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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: kormac who wrote (6910)	10/4/1998 9:33:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 9980

seppo, increases in domestic demand always brings with it increases in imports, and since Japan trades with the rim is almost 30% of its normal import, it will help the rim as well. The point that needs to be made is that South East Asia has excess productive capacity, this excess capacity needs to be eliminated before the economies in the region can be "restarted", this will be achieved partially by writing off some of this excess capacity, but also partially by increasing final demand and returning to a growth mode. if all the excess capacity is written off, the damage to the host economies (in lost capital) will create a capital vacuum which will take a very long time to repair (bankruptcies like we had in the 30' and a spiraling down economy). Zeev