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To: russwinter who wrote (66038)	3/18/2001 6:04:21 PM
From: Hawkmoon	Respond to of 116756

(fun to pretend and I work cheap) Same here... :0) The way I look at this thing in Japan is that the situation is too far along for them to succeed merely by selling off interest producing US assets to shore non-producing assets in Japan. It would have worked initially when many of these bad loans began to accumulate on their books and they could resolved them at that time. But now, something more substantial is required to create the change in mindset necessary. As for lecturing the US on its need not to be overly dependent on foreign capital, I would respond that capital inevitably flows to where it will receive the best return. And I can't see exactly where Japan will create such a return for investor's money until a devaluation has taken place and debt written off so their corporations can return to some form of positive earnings outlook and emerge from underneath their smothering debt-load. Let's face it... most of these companies should have gone bankrupt years ago, but because cross-shareholdership in the Kireitsu form, and strong political pressure to subsidize them with taxpayer money, they've now arrived at a point where the need their own form of corporate "resolution trust corporation" responsible for working out these debt issues. And after lecturing them on the free-flow theory of capital migration, I would lecture the Japanese on the dangers of relying upon foriegn markets for sustaining their economy. Because if they pull their money out for political reasons, we can put up trade barriers for economic ones. After all, we're always open to taking capital, but we certainly don't have to take their products if we can show that they have violated the principles of free trade (which they have for decades). Regards, Ron