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 : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Mark Adams who wrote (7582)	11/21/1998 2:37:00 PM
From: Lee Lichterman III	Read Replies (2) \| Respond to of 9980

I hate to be over simplistic but ... some injection will be required at some time so I see no fault in that alone since IMO it is a necessary evil. The trillion dollar question is will they only intervene in companies with real futures that will concentrate on making money instead of producing volume below cost. If the targeted companies are sound and have the goal of making money and paying back the cash, then it could work out in the long haul. We did the same with Chrysler and despite the rantings by many, they paid the loans off early and recovered. The gold thread just posted that Iraq has turned down a request to see some documents. I am busy and haven't snooped around to verify but I wonder if things are about to heat up again. Gee it lasted a week <ng> BWTHDIK, Lee

To: Mark Adams who wrote (7582)	11/21/1998 7:11:00 PM
From: Ramsey Su	Respond to of 9980

Now, the fix to the situation, is to do everything possible to get corporate spending (investment) going by direct intervention of the government in the capital markets, pushing cost of capital even lower. Something not quite right in this picture. I think there are many things not quite right, or at least I am not skilled enough to read my crystal ball. 1) there is going to be a mother of all deficit in Japan next yr, how are they going to finance it. 2) BOJ has been buying commercial paper already, how much money are they really spending on this bank bailout and the stimulus plan? US$1 trillion or more? 3) No banks are really going to be closed with the bail out plan. How much new money is simply replacing money already lost vs being pumped into economy? 4) Korea, Brazil, Russia all have loans coming due. I have not read good reports on how much. Anyone who knows answer please post. Is there anything to worry about there? How much money does the IMF have left this time. I think new funding may be a little more difficult. 5) EU is coming on line in just a couple of short months. Anyone wants to venture a guess as to which way money will flow? If there is a massive exodus out of USD, I wonder what is going to happen to US interest rates? May be I should pull a Steven Rogers and offer some San Miguel for each correct answer. Ramsey