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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: pogbull who wrote (4728)	8/18/2002 11:04:30 AM
From: Jim Willie CB	Read Replies (1) \| Respond to of 89467

this may be a first step on an idea tossed last year when the 30-yr TBond was removed from topshelf trading in 2001, some wise pundits proposed that the Japanese Govt might someday be involved in resuscitating the 30TB in an attempt to re-establish a new foundation for the Japanese "DEAD MAN WALKING" banking system the final step requires Japan to issue money to monetize their dead banks, then use the money to buy trillion$ of new US 30TBonds I believe John Mauldin was one such person musing this my first blush on this Citi deposit infusion is that the Dead Japanese Banks are beginning a merger process with Dead USMoneyCenter Banks Japan might be exporting the failed Keiretsu Concept the PPTeam has many weapons, it seems this tells me that the JPM/Citi group of bigbanks are in very serious danger of implosion $850M may sound like a lot of money, but in their world it is weekend party money this amounts to a fraction of recent losses from Enron, Global Xing, KMart, Argentina let's not forget that in the 1990 decade the main game back then was the Yen Carry Trade borrow 1% money from the Japanese banks sell it and buy the USTBond which brought with it 3effects: - declining Yen - rising USdollar - declining US interest rates which set up the US economy in a perfect position to be Japanized i.e. accelerate rates toward zero, after the market correction now the Yen Carry Trade sets up the Japanese Banks possessing tons and tons and tons of USTBonds they can sell them and hurt the US markets and economy they can watch in horror as their last remaining real assets become such TBonds, while the entire banking system is worth ZERO or they can make these TBond assets available to US BigBanks in an attempt to prevent their destruction, as happened in Japan this is proof of desperation, of PPTeam actions, and of imminent near-death experiences coming for NYC banks Citibank clearly is below depository requirements my guess is technically Citi is BANKRUPT their exposure in Brazil alone is $13B so this is chumpchange reminds me of Compaq and HP merging to avoid death just a matter of time / jim