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Politics : Formerly About Applied Materials
AMAT 249.89+3.1%Nov 26 3:59 PM EST

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To: Ramsey Su who wrote (20405)6/15/1998 1:38:00 PM
From: Teri Skogerboe   of 70976
 
OT OT, Ramsey,

Re: "Rubin and G7 lay off the yen and allow it to free fall. To the
US, this almost have the same effect of slowing down the economy without raising interest rates."

I think you've got it. The other thing Rubin (and the rest) must be thinking is that for Japan to act, they are going to have to feel major pain, i.e. they will only make the changes that are inevitable at some point when they are forced to do so. So, let the markets whip them to the point that they begin reform. This is very similar to what Barton Biggs suggested would happen in Japan. I think he nailed it. He said the currency and stock markets would have to beat them into realizing there's a problem, and one they can't continue to ignore.

I don't think we can help them (much)... they have to decide to help themselves.

My 2 cents,
Teri
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