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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Mike M2 who wrote (48399)	2/23/1999 10:18:00 AM
From: Tommaso	Respond to of 132070

The volatility today (so far) is really amazing. Has anything drastic happened anywhere other than the NASDAQ?

To: Mike M2 who wrote (48399)	2/23/1999 11:53:00 AM
From: Eggolas Moria	Read Replies (1) \| Respond to of 132070

The Japanese waited too long. Between 1988 and 1989, Japanese banks routinely lent over 100% of the appraised value of real estate (so that it would cover at least 2 years of interest payments). The company would then use the money to invest in the stock market. Japanese real estate prices were so inflated that at one time the implied value of Japanese real estate was over $13 trillion (about the size of Montana). Kindleberger has written often that the primary mover of economic/financial disasters is the bursting of grossly inflated real estate values because of the leverage usually involved. My house hasn't gone up much in ten years.<g>