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Strategies & Market Trends : JAPAN-Nikkei-Time to go back up? -- Ignore unavailable to you. Want to Upgrade?

To: borb who wrote (2155)	11/22/1999 7:47:00 PM
From: Hawkmoon	Read Replies (2) \| Respond to of 3902

Oh... I don't disagree that consumption may pick up. However, let's not forget that people's wages will be chopped by two zeros as well, thus that may ignite a round of wage inflation as well, which could cut into corporate profits. And their portfolios and savings accounts will be cut by two zeros as well. Also, gov't revenue will be cut by two zeros as well. But politicians will look at the small numbers and think they can spend more because their budget looks smaller by two digits than it has in the past. So what I would see leading up to this redomination (which is probably more appropriate than revaluation, although still a "reverse split" of the currency), is that capital would flee to other locations until the damage to the currency is done. I could be wrong. I've frankly never witnessed such a large redenomination of a major global currency. The fact they feel they need to do speaks volumes in and of itself. Regards, Ron