I've seen this blurb on Bllomberg several times.
We've seen about $450 billion of writedowns in the financial sector.
About 85%-90% have come from the US and Europe.
Either:
1.) Asian banks were really smart and avoided this altogether, or
2.) We've got some problems to look forward to.
Schedule for Week of May 26th
21 minutes ago
3 comments:
I pick (1). Not because the Asian banks are smarter, but because they (and Russia) suffered through this same thing ten years ago. (Remember the "Asian Flu?")
The same question could be asked about Middle Eastern banks as well. We haven't heard much from them and they are largely involved in helping to provide capital to keep the US banks afloat. This may be a simple matter of lack of involvement in that sector by those banks, but who knows.
Asian banks weren't the only ones to suffer during the IMF crisis, which begs the question of why they would be the only ones to learn from it.
Distance, differences in legislative pressure and business practices suggest that they will be longer in admiting the problem.
Money goes where the money is, and the money has been going down the toilet for the last few years. We've got some problems to look forward to.
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