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 (8340)	11/17/1997 7:25:00 PM
From: Snowshoe	Read Replies (2) \| Respond to of 18056

>>These banks can be (and will be, if they do not increase capital) legally barred from doing international banking. This will be a near-death of Jap, Inc. So the govt decided to move and the market believed, IMO.<< Can you elaborate on the threat posed to Japan if their banks pull out of international banking? What about the article posted by John Hunt, which says they may go ahead and do it? Here's a quote: ''It is safe to say for most Japanese banks their foreign operations are much more a matter of prestige than of contribution to the bottom line,"... techstocks.com

To: Rational who wrote (8340)	11/17/1997 10:02:00 PM
From: Mike M2	Read Replies (2) \| Respond to of 18056

Sankar, thanks for all your posts. One historical correction the Federal Reserve System was established in 1913 not in response to the depression. BTW did you see my link to an article concerning why japan should sell treasuries and buy gold? I would be interested in your comments on the article. Mike gold-eagle.com

To: Rational who wrote (8340)	11/17/1997 10:47:00 PM
From: Sam Citron	Read Replies (1) \| Respond to of 18056

Sankar, Thanks for your observations. You assume that BOJ will have to bail out failing banks. Why? Is there a legal committment to do so under a government grarantee? Is it necessary or desireable? Tradition? Is this a "too big to fail" situation? What about the moral hazards of such a rescue package? Wont it send exactly the wrong message and give people the incentive to place deposits in risky banks because they may offer a bit higher interest rate? SC