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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Steve Hegji who wrote (1682)	1/6/2001 3:07:22 AM
From: Rolla Coasta	Read Replies (1) \| Respond to of 74559

Did they have big money surplus, like we have now ? Also, their geographic location is a big disadvantage. We cannot simply compare the US economy with them. The US at least has attracted lots of engineering talents from around the world, along with big capitals. I like someone saying... "If you are in the US, you are in the heaven." But don't sing "Too Much Heaven" to me ... =P Q

To: Steve Hegji who wrote (1682)	1/6/2001 4:24:48 PM
From: nihil	Respond to of 74559

Of course it worked. Interest rates fell close to zero. But no one with money or credit could envision a domestic investment that was worth the risk, because the government refused to force the liquidation of zombie (walking dead) corporations. No one is keeping American walking dead alive. I have doubled my money in a week in a money losing company whose stocl was worth $6 or $3 a share ($31 million in cash and no noticeable debt) but was selling for $.50. My impression is that there are dozens of network, tech, and other stocks which can be picked up at much less than book value or liquidation value. In Japan, if such companies were available, capitalists would borrow at 2% and liquidate them. Most Japanese companies prefer to die on the vine and keep people employed until all of their assets are used up or looted. Practices are very different in Japan and the US. The Japanese government is primarily a coverup operation. In the US a single creditor can force a liquidation by filing suit. Admittedly, many fraudulent debtors escape liquidation as debtors in possession until they have looted the company, but this is not routine in the US and takes a little skill..