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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?

To: NOW who wrote (2449)	6/12/2003 6:05:59 AM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 4907

if it led to an exodus of cash from banks which have already surpassed international standards of "indecency" the indecency is the result of bad loans, not insufficient cash. the cash just keeps a comatose patient alive. banking reforms and monetization (socialization) of bad loans will deal with banks' capital problems. BOJ just announced it will buy junk bonds, the first such move for a modern CB. how can you say where the radical steps will stop? online.wsj.com With its cupboard of traditional deflation-fighting tools almost bare, the Bank of Japan stepped into unexplored policy territory by announcing it will buy junk-grade corporate debt in an attempt to jump-start economic growth. The move -- a first by a modern central bank -- could signal that the Bank of Japan's new governor, Toshihiko Fukui, is more willing than his predecessor to take radical steps to reinflate the world's second-largest economy. Mr. Fukui's performance is being watched, particularly in the U.S. where Federal Reserve officials are alert to risks of Japan-style deflation.