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

To: Liatris Spicata who wrote (7598)	11/24/1998 11:34:00 PM
From: Mitch Soboleski	Respond to of 9980

Bravo, Larry. Keep the faith.

To: Liatris Spicata who wrote (7598)	11/25/1998 12:07:00 PM
From: Ramsey Su	Read Replies (1) \| Respond to of 9980

Larry, I don't think your acct of the US S&L bailout is correct. Regardless of what name you give it, the end results are a ton of S&Ls are closed, not bailed out. Tens of thousands of bank employees, from presidents to tellers were out of work. Branches, real estate and loans were dumped to the highest bidders or most connected. Above all, shareholders ended up with zero. The Japanese version of this bailout is a real bailout. It is vague as to what requirements there are for the banks to request a cash infusion. No banks are going to be closed and it is not even sure if they will be downsized. Shareholders may end up subordinating to the government's prefered shares but not wiped out. It is still unclear as to how they will be liquidating their assets. I was involved first hand in the RTC fire sale process and opined that it was less than fair in many cases. With Japan's crony capitalism, it can be a big can of worms. The street seems to view the actions taken in Japan as positive. The most likely scenario is the yen will drop and start the chain reaction by putting too much pressure on the yuan. Ramsey