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To: Arthur Tang who wrote (1177)10/15/2000 4:09:54 PM
From: FR1  Read Replies (1) | Respond to of 1471
 
The argument I heard was that most of Japan's Bank Wealth is based on non-performing loans for very questionable real estate transactions, etc.

Eventually this has to be corrected. Pressure to correct it is increasing. If, as you say, Their total amount is still $1.3 trillion dollars, then liquidating most of that sum would have quite a impact on us.

What I don't understand is what that impact would be. In other words, if Japanese banks sell a lot of their bonds how would that impact interest rates and why?