MDA - Market Direction Analysis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis

SPY 677.48

+0.3%

Nov 5 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: pater tenebrarum who wrote (38484)	1/30/2000 10:54:00 AM
From: flatsville	Read Replies (1) of 99985

New York Times Fair Use/etc... January 29, 2000 Japan to Turn to Direct Loans From Its Banks By STEPHANIE STROM OKYO, Jan. 28 -- In a striking demonstration of how precarious Japan's financial situation has become, the government plans to borrow money directly from banks to fulfill its obligations to local governments. Governments normally borrow money by issuing bonds, which is cheaper than taking out bank loans. Japan's unorthodox approach to borrowing now and the size of the shortfall -- 8 trillion yen, or roughly $76 billion- have stunned economists and other market watchers. With one small exception, this is the first time since the days after World War II that Japan has taken such a step. The amount is equivalent to roughly 2 percent of Japan's gross domestic product, and exceeds the 7.7 trillion yen the government has injected into troubled banks. "The funding mechanism is breaking down," said David Asher, a research fellow in the Japan Program at the Massachusetts Institute of Technology. "The dam is showing more and more stress fractures, and they're trying to put plaster on them." (partial story only from Usenet source) (Story has been archived. Fee for copy status now.)

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next