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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: Razorbak who wrote (9918)	10/25/2001 11:40:53 AM
From: kodiak_bull	Read Replies (1) \| Respond to of 23153

I strongly urge everyone to read the WSJ's article about the liquidity trap Japan is facing with a central bank lending rate of 0.001% and nobody borrowing. It would be hilarious if it weren't so lousy. One guy tries to put 33 million dollars (yen equivalent) in a savings account and gets yelled at by the bank, so he withdraws it. The deposit insurance you get charged for making a deposit is more than the interest you earn, so putting money in a savings account actually loses money. But nobody wants to borrow, nobody wants to invest. There's a profile of a couple who are saving on utility supplied water by using rain barrels, have thrown out their TV, and cut off the electricity to their son's room. They're not in debt, they're just hoarding cash. In any event, someone around here can probably post a link to the WSJ article, and it's required reading as AG ratchets down the rates. Btw, after 8 1/2 months, we're approaching post #10,000, and still #8 on the Hot Topics List (167%). Kb