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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?


To: Henry Volquardsen who wrote (2304)12/18/1999 10:35:00 AM
From: Chip McVickar  Read Replies (1) | Respond to of 3536
 
Henry,

There is a fascinating structure of "Liquidity" shaping up with the Fed's infusion of money into the US system because of y2k and the quick retrieval early January. It's effects on our economy has been hotly debated. Care to give an opinion?

Do you believe this will essentially become a simple "Wash" or has it produced any significant imbalances either domestically or internationally?

>>The question is whether the extent of the problems in Japan will eventually introduce greater stress into the system.<<

The international financial stress will increase and the balance of international currency movements that you describe will be hampered. Only solution is a massive restructuring as in our banking crisis and there is no political will for this to occur in Japan.

Japan's serious problems will dominate its structure for the next 25 years..., it is very possible their entire elderly working class population will find their savings dramatically reduced with any plan that brings balance to the monetary complications of the government. It's appalling and could become very sad?

The Best Hope for any easy repair is about to pass away.

Chip