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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: NOW who wrote (13548)	12/14/2001 8:52:36 PM
From: macavity	Read Replies (1) \| Respond to of 99280

Melons. Ok you caught me out. I just like my Fruit and Veg. The problem as I see it, is a complete effort on the part of the PTB (Powers That Be) to not allow competition. If they did a whole host of products and services would find their 'true' value and a whole host of people would be unemployed. Japan is more fortunate in having a value-added export economy and high savings ratio, but they have to kill the uncompetitive and unproductive parts of their economy to prosper. People have to understand that they actively and positively refuse to do so. Its a mindset. On a much different basis is all this 30yr bond suspension, tax rebate, flood with liquidity argument. Both are politically-inspired decisions to prevent quicker, more painful (and possibly unpredictable) solutions. The excess has to go for supply-demand to be re-balanced. Ford is doing its bit by zero-cost financing, Palm were fire-selling their old handhelds (reducing stock), Mr G is doing his bit printing (increasing money). There is always a price to get assets of your book, we just hope its greater than cost. It is arrogance to demand it. In Japan they only offer the monetary solutions - print cash / devalue currency in a bid to maintain the high (and inflated) costs of goods and services. This has not worked. Surprise, surprise no-one buys. Companies here have to admit that there goods and services are the wrong price to generate demand, and cut costs or revalue their assets (banks) accordingly. Yes, it is changing but it is glacial in its speed. Japan is just a prime example of what happens when markets are not allowed to work after a bubble. Mr G by flooding the market with unrequired liquidity is playing a similar game, he is postponing the death of all the multiple (and unnecessary) fiber, telco and tech companies. The sooner the living dead are slayed, the sooner any real recovery can occur. It wont happen though, as it is human nature (politics) to fight it. -macavity