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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Mike M2 who wrote (71488)	12/6/1999 1:40:00 AM
From: Simba	Respond to of 132070

Mike, MB: Looking at this chart of Japanese rates; economagic.com it is interesting to note that in 1989-1991 period the BOJ increased rates by nearly 4% to prick the bubble but then has tried increasing liquidity from then on to most recent lows of 0.5%. Still it did not infuse the market or economy with confidence. Also on the same chart the rates have gone from 3.5 % to 9% between 1979-1981 and from then on a sharp drop to the lows in 1989 during which period (1982-1989) the stock market made it top. Do you know how the market fared in the 79-81 time frame and what prompted such a large increase in the rates which was larger than the rate hike that pricked the bubble in 1989 ? The US rates are on an ascend and it may need a full 1 % higher rate from now to bring down this market. Many analysts expect a 0.5 % hike in the first half of next year by AG. What is your opinion ? Do you think rate hikes are the road to this collapse as in the case of Japan and if so what amount at what rate ? Simba