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Gold/Mining/Energy : A Deadcat Bounce -- Ignore unavailable to you. Want to Upgrade?

To: Ed Pakstas who wrote (54)	11/18/1997 12:24:00 AM
From: Tommy D	Read Replies (1) \| Respond to of 97

I just checked the Nikei and it is still up significantly. I agree with you that the rise is almost too good to be true(over 10%) in 2 days and this is no small market(like the Hong Kong market). The report on CNN tonight sugested that the increase was artificial and implied that the Japanes government in some way propped up the market as they could not let the index drop below 15000 or it would have significant implications for the Japanese Banks. Hopefully, the market is reflecting a beleive that the Japanese Government will deal with the domestic banking situation. I don't know if that means some sort of bail out but probably will. It's ironic that in some respects the Banking crisis in Japan is not unlike what occurred in the U.S. in the late 80's. Probably, few people rememeber when banks like Chase or Citibank were in the low teens and the thrift and loan industry was in shambles. Although the method of accounting in the U.S. is and was much different, there was a fundamental problem with the loans on the books which took a long time to work its way through the system. Fixing the banking system is key to Japan and key to fixing many of the Asian country's economies. This in turn will significantly help resources including gold. I am not sure that economic turmoil in Asia will help the price of gold as if these economies tank, that would lead to deflation rather than inflation. We need sustained growth and with it resulting price pressures. Just some ramblings from a mourning Rough Rider fan. Regards.