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

To: BGR who wrote (60177)	5/21/1999 3:10:00 PM
From: Mike M2	Read Replies (1) \| Respond to of 132070

BGR, global businesses are hurt by excess capacity everywhere. My point was a considerable ( I don't have estimates) amount of the excess capacity was added by the Asian tigers during their rapid growth period. I'll have to dig up the numbers later but a very large percentage of growth ( note I said growth) in the global economy came from this region. From the perspective of Austrian economics easy credit creates booms leading to overinvestment or consumption and excess debt. In the case of the Asian tigers they overinvested in industrial plant much like japan did in the 80s. Look at DRAM for example -money invested in DRAM when it was profitable seemed prudent but when too much capacity is added the investments are no longer profitable. Mike