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To: BGR who wrote (63924)	6/22/1999 9:25:00 PM
From: GST	Read Replies (1) \| Respond to of 164684

BGR <As for why the intervention is necessary, it is for the same reason why interest rate adjustments are often needed, because the market overreacts.> Japan is so accustomed to 'controllling' things that would otherwise be set by markets that they sometimes don't understand that the market is bigger and more powerful than the Ministry of Finance and the Bank of Japan. The Japanese government wants to, in effect, peg their currency in a range of 120-25 to the dollar. This is hardly what I would describe as an 'intervention to correct a market over-reaction'. In the end, governments only win at these games if they accentuate market forces rather than butting heads with markets. They need another asset bubble like they need another hole in the head.