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Non-Tech : General Electric (GE) -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (1825)	3/29/2001 9:26:01 AM
From: Arthur Tang	Read Replies (1) \| Respond to of 3256

"Don't fight the FEDS" is because of the money printing authority they have. Not because they use proxy to do currency exchange gamble on commodity exchanges, which always lose money for the FEDS. Or they change interest rates to destroy the member banks(30 year mortgage was 6.5% but overnight discount rate went up to 22%). FEDS never lower the interest rates to help member banks, but they do increase the multiples on reserves. The multiples give banks more money to make on each deposit dollar. The fixed multiple of 6 had been changed since 1992 to 8.5. The multiples in Japanese banking system is already 12.5, we are proposing to increase to 18 as their economy increase from $4.5 trillion. Currently, Japan is strapped for growth; and their monetary policy is not going for equity valuation, and land development which is how wealth is built. All that requires strong yen, so that yen is not converted and flowing to America. Of course we welcome weak yen and all their money flowing to Wall street. Would you refuse all that (Yen can cook?)yen can buy? So, Treasury secretary O'neil is not helping Japan at all, by weakening Japan further to tell them to write off bad loans and close their banks. Japan needs more loan money to save their economy or else domino effect of bankruptcy upon bankruptcy will come to pass. They could of course nationalize their businesses, to save their "trading" economical system which they have the same as in South Korea's "over loaned central bank portfolio problem". England, Germany and France all had to do nationalization in the past. America avoided it by improving equity valuation and land subdivisions to build wealth. Wall street is to be applauded.