From: "Rebecca Peoples" <wellsfargo-AT-tinet.ie> Subject: M-I: Re: Re: currencies, economic crisis and crisis theory Date: Mon, 20 Oct 1997 20:45:08 -0700 Dennis please explain what keiretsu is. Rebecca ++++++++++++++ There are no lessons to be learnt whatsoever, because the Southeast Asian model has not collapsed at all. These governments are going to socialize their banking systems, bail out their proto-bourgeoisie, devalue their currencies, keep domestic interest rates low, and in short sacrifice the financial claims of their banks and real estate punters in order to protect their industrial base. They got a bloody nose from privatizing their systems too quickly, so all that's really happening is the re-entrenchment of the Japanese keiretsu model. It's happened before, and it will happen again; Hong Kong experienced a horrendous stock crash in the Sixties, again in the Seventies; Japanese firms regularly crashed and burned in the Eighties, only to be resuscitated by their keiretsu parents; South Korean firms went under by the fistful during the heavy industrialization drive in the Seventies, only to be bailed out by an iron-fisted technocratic Government and by the nascent chaebols; Japan's Nikkei bubble burst in 1991, but the keiretsu bailed themselves out yet again, merging vast numbers of banks and writing off $1 trillion of dead loans. --- from list marxism-international-AT-lists.village.virginia.edu --- --- from list marxism-international-AT-lists.village.virginia.edu ---
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