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Technology Stocks : Cymer (CYMI) -- Ignore unavailable to you. Want to Upgrade?

To: D.J.Smyth who wrote (6845)	10/27/1997 7:43:00 PM
From: mike	Respond to of 25960

darrell, you need to look at the whole picture rather than bits and pieces. I cant explain the whole process here. this is another small part of the whole picture, hope it helps. chebucto.ns.ca

To: D.J.Smyth who wrote (6845)	10/27/1997 9:51:00 PM
From: Shakush	Read Replies (3) \| Respond to of 25960

Darrell, Japanese, Thai, Korean, and other Asian banks are allowed to use to their massive stock holdings (themselves valued in large part based on their overvalued real estate holdings)as part of their capitalization. Many teeter on the brink of insolvency and could very well be driven there by stock devaluations. To shore up the banking system (s), the Japanese Central and commercial banks (as well as others) could be forced to repatriate those funds by first selling bonds and other liquid assets. An oversupply of bonds would tend to drive down the price and the dollar would in turn be pressured by the need to sell dollars for yen. The Japanese have no room to further increase liquidity as short term rates are at 1/2% and have been there for about 1 1/2 years. I suppose they could make history by paying people to borrow, say short term rates at -5%? See this link for a look at currency trading on Globex. cme.com