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Strategies & Market Trends : Heinz Blasnik- Views You Can Use

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To: Wyätt Gwyön who wrote (60)4/16/2003 12:20:13 PM
From: pater tenebrarum1 Recommendation  Read Replies (2) of 4905
 
an important point here is that after Japan's RE and stock market bubbles burst, Japanese capital exports were instrumental in fostering the 90's bubble in the Western economies.
Japan is the world's banker - should repatriation become a serious issue (and imo it WILL one day) , a descent into a global depression should indeed be expected. note in this context that the Asian crisis of '97 - '98 which culminated in Russia's collapse was largely a result of Japanese banks calling in loans across South East Asia.
as i've mentioned, the huge hedge fund industry also relies on a lot of Japanese funding - iow, Japan's banks have been equally instrumental in creating the 'hedge fund bubble'. this is a largely overlooked grave potential danger to the markets. as always in financial matters, great quantity assures diminished quality at the margin.
btw. a few months ago a Japanese hedge fund went from being in reasonably good shape to total wipe-out in a matter of weeks. its name, i kid you not, was 'Eifuku'.
the English pronunciation was basically a warning to investors in the fund...
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