Ref:Yamaichi.
DK:The following was my response to someone on the Dell thread regarding Yamaichi. One good thing though is Japan will be closed Monday for some holiday or the other.Another interesting point is that the Japanese government seems unfazed by all this,so I do not know why we should be.Let's hope mass hysteria will not set off another round of mayhem in the market around the world.
The Yamaichi news was already out Friday(though not officially). In my modest opinion,the Japanese economic woes are a direct result of bad economic policies of the Japanese goverment and nothing more. It is not like the Japanese government is on the verge of bankruptcy, they just lack the political will to implement the necessary monetary and fiscal policies. They have plenty of money to rescue their own, it is one of the very few countries who run a surplus year in and year out and to top it all Japan is the largest creditor nation in the world.
Lastly, to alleviate your anxiety about the impending economic doom,I like to say that I heard the director of Japanese Economic Institute say the other day that the Yamaichi thing could do some modest amount of damage to the Japanese economy in general and he expect very little effect on the U.S economy because of it. Having said that,I like to say that I can not vouch for the general behaviour of the investing public here in the U.S,if everybody decide to panic and dump their stock in mass hysteria, you are on your own and I, on my own. |
