Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Analysis Class for Beginners -- Ignore unavailable to you. Want to Upgrade?

To: FR1 who wrote (1178)	10/16/2000 5:19:07 AM
From: Arthur Tang	Read Replies (1) \| Respond to of 1471

In the US, non performing real estate loans in the 1980s caused many savings banks to be dissolved by FDIC. It was of course saved by the new economy. Community banks are doing extremely well by their developer customers again doing subdivision of farm lands. Japan has to develop their own domestic economy before recovery and regrowth is possible. Japan's central bank, Bank of Japan can print money, so there will be no pressure to sell their holdings. But they could sell their US treasury bonds to buy equity(stocks) and make a lot more money. We have stocks on Wall Street which totals about $8 trillion; treasury and municipal bonds plus commercial papers total about $8 trillion (all order of magnitude estimate). If they sell our treasury bonds, only FEDs have enough money to absorb $1.3 trillion worth of treasury bonds. Even FEDs have to print money. Print money is just a slip of paper(credit or debit), not printing dollar bills. They can use the credit to buy anything on earth, but mostly will be US products and goods, because we have the largest economy and thus enough products and goods for sale.