Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Rational who wrote (8106)	11/16/1997 1:51:00 PM
From: Joan Osland Graffius	Read Replies (2) \| Respond to of 18056

Sankar, >>The BOJ cannot reduce the interest rate below 1.5% (?) to return profitability to Japanese banks. Japanese will have to sell a lot of their $800 bil US Treas, before Wed, to ensure that their banks' capital levels are OK. This is a real threat to to US$. Why before Wednesday? Thanks in advance, Joan

To: Rational who wrote (8106)	11/16/1997 1:55:00 PM
From: Joseph G.	Read Replies (1) \| Respond to of 18056

<<when he commented about the minimal impact of SE Asian turmoil on the US economy.>> He did not say it will be minimal, he said it is "not negligible". Which means: it is not minimal, at best. Joe

To: Rational who wrote (8106)	11/16/1997 2:33:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 18056

Sankar, Japan is doing eveything they can to cover up their basic problem except the one thing that will actually solve them, CUT DOMESTIC TAX RATES. They are trying to be holier than thou about deficit funding but they have little choice, or they will end up with a 20 years of sub par growth. They can no longer get their growth from export (40% of their excport is to the now declining rim), It is time for them to use the fiscal side of policy making, they cannot push on the interest rate rope to pull the economy out of troubles, their rates are already ridiculously low. Such low rates have artificially held their markets at extremely high valuation, and as you so apyly put it, if the Nikkei drops just a little more, it will then drop precipitously. It would aslo help them if they were serious about removing some major trade hindrances in their system, but that might be too much to ask. Zeev