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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 243.68

-1.0%

10:15 AM EST

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To: Sarmad Y. Hermiz who wrote (48247)	3/31/1999 1:38:00 PM
From: GST	Read Replies (1) of 164684

Sarmad <why the change in the need for washing Japan treasury sales ?> March 31st window dressing in Japan has a completely different dynamic than anywhere else. Something like 15 of the 19 major banks are bankrupt. They hold shares in companies as assets, which is a practice that would not be allowed in the US. Their other assets are loans -- including one trillion dollars of uncollectable loans which are still counted as assets. So to dress up the banks' books so they can be allowed to continue being the walking dead for a few more months they pump up share prices for other stocks. To do this they have been selling treasuries. If the US fed doesn't wash these sales, it is bad news for the Japanese banks because the yen would rise and cause the stocks of major exporters to fall. Now that the books are closed there is far less pressure to do this silly window dressing. And the US central bank has precious little reason to justify washing these sales after today by pumping extra liquidity into the US market -- which appears to have been going on for a few weeks. A drop in liquidity is possible without a rise in interest rates -- follow the money.

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