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Technology Stocks : Novell (NOVL) dirt cheap, good buy?
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To: Spartex who wrote (20757)3/6/1998 9:24:00 AM
From: Paul Fiondella   of 42771
 
(Off Topic) Asia--- Japan Watch

The defense of the Nikkei continues. As mentioned previously the stocks in the Nikkei are counted as part of the capital base of the banks which have extensive stock holdings. At the end of March they take the price of their holdings and do their calculations and reveal their fiancial situation. This makes the defense of the Nikkei a top government priority.

Two steps have been taken to boost the Nikkei.

The first is a purchase of some $15 billion in bank shares and bank issued bonds by the government Resolution Collection Bank. This is a scheme of pumping liquidity into the banking system similar to moves taken here in the Great Depression. However every bank is eligible to get the money. There do not appear to be any financial requirements above the table. This is therefore a giveaway not targeted to assisting the banks that most need the money and can prove they are solvent.

The second move is the rumor, probably true, that the governement will go into the stock market and buy shares of companies to the tune of $7.8 billion. They are going to use Postal Savings Bank money. Now if that were tried here!!! But it is very effective in stimulating a stock market.

They just have to get through March 31st and they can carry all of those bad loans for another year....
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