Stich:
I don't know anything about anything but that sounds kind of ominous to me. If it were at all possible, I am sure that Japan would love to see the US bubble get as big and fat as it can and then pull the rug out, i.e. pull their money out driving rates up and the market into the tank.
I think it is a very big mistake to under estimate Japan. They may be down but, I for one, do not count them out. As Sakakibara points out they are the lenders we are the debtors. One should also keep in mind that Japan has always said it would one day do to us financially what it was unable to do in combat. I don't know if they can. But, I believe if they can they will. It undoubtedly, and in no small way, has been a great loss of face to watch the US market go from 2,000 to 10,000 while theirs has gone from 40,000 to 15,000 and we got to use their money to do it! It really doesn't matter that it is their own silly fault.
If I were Japan I would let the yen get as cheap as possible in the short run convert my dollars into 150 yen that cost me 80 take my money home and invest it in Japan and Asia.
Susan |
