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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 136.33-8.4%3:59 PM EST

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To: limtex who wrote (113586)2/18/2002 7:47:14 PM
From: Keith Feral  Read Replies (1) of 152472
 
Everyone has been talking about the problems in Japan for 10 years. What needs to happen in Japan is a significant rise in interest rates to reflect the higher risk of government debt. You can't float $10 trillion in debt with 0.5% interest rates.

If the Japanese were to start increasing interest rates, that would make the yen more attractive to domestic and international investors alike once the change is made. However, the currency market might re-act in the exact opposite way in the short term as a series of interest rate adjustments is made. This might give traders a chance to stage a coup against the yen.

There have been some suggestions that the Japanese government is ready to step in and back the banks once they complete a full audit of the banking system. The whole situation reminds me of the banking crisis in the US in the late 1980's. Everything sucks in the short term, bound to get better once the press dies down.
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