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To: fedhead who wrote (138823)	2/7/2002 2:26:58 PM
From: GST	Respond to of 164684

There are many reasons why the Japanese did not do this -- the way politicians are funded by companies is part of it. The fact that real estate loans (I don't know why people think real estate investment is more secure than stocks), these loans were so far in excess of the market value of the real estate that it was clear that the banks were in fact insolvent -- so marking the assets to market was something they chose not to do to protect the big fish. You might recall that many of the big fish are people who should have been on their equivalent of the public ENRON hearings -- there were lots of crooks. The companies had use real estate to 'secure' the loans underlying their companies -- so all of them looked really shaky. And the p/e multiples were absurdly high on the stock market because the floats were small and it was easy t squeeze them up -- people think our market is so different but the dynamics of bubbles are remarkably similar -- slime, greed, fraud, corruption, stupidity and then a reluctance to face the music. We have not finished facing the music -- but it does not mean I cannot make a buck off of wcom if it gets oversold (and I hope I am right about that but you never know).