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To: Stock Farmer who wrote (49234)	2/21/2001 10:51:19 PM
From: TobagoJack	Read Replies (2) \| Respond to of 77397

We actually need more folks believing that maestro can save the pumpkin patch in Nasdaq Valley, as it makes it easier for us to be raiding the treasure trove on Wall Street. Firm conviction of the bulls will make us rich, twice over. Chugs, Jay

To: Stock Farmer who wrote (49234)	2/21/2001 11:09:44 PM
From: Steve	Read Replies (1) \| Respond to of 77397

The problem with you John is that you haven't learned much in all your years. Apples and oranges comparisons with Japan are just that. Japan's situation as you have been told is very unique. Japan's high rate of savings creates what Keynes called the paradox of thrift. The paradox of thrift occurs when a nation's savings rate results in aggregate demand falling or remaining flat. Japan was fine as long as it was a net growing export economy. Japan's excess savings drove the growth in the export economy. As long as exports continued to grow Japan's aggregate demand problem remained hidden. Once exports didn't continue to grow at their former rates Japan's internal problems became clear. Japan's current rate of interest is a result of trying to stimulate aggregate demand but it has driven the country into the net situation of a liquidity trap. But because Japanese savers and financial institutions have the opportunity to benefit from much higher rates overseas we see these savings financing our trade deficits in dollar denominated assets. The real evils of a liquidity trap such as we experienced in the mid 1930s effectively grinding the financial system to a halt never has happened in Japan because of free money capital flows to other countries. You seem to think that there is some huge amount of "mal invested" debt out there. Please quantify this "mal invested" debt. I'll help you out. The federal reserve lists total outstanding debt at: $18,253.9 billion. See: federalreserve.gov Is the percentage of mal investment 0%, 5%, 10%, 20%, 30%?? If it is mal invested how do you think it is then accounted for? Hint: By commercial banks it is written down and removed as an asset from the bank's balance sheet where the loan is held. It is also removed from the amount of outstanding debt as reported in the H6 report from the Fed. BTW even during our worst most recent recession in 82-83 net outstanding debt increased in every quarter. Hmmm, who needs to go to the library.