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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?


To: Bilow who wrote (11148)12/9/1997 8:03:00 AM
From: Defrocked  Read Replies (1) | Respond to of 94695
 
Carl, the debacle in Japan may be attributed to their
anemic money supply growth over the last six years that
lead to their weak domestic growth and created the low
interest rate environment that appears to some as loose
monetary policy. One should also add the lack of banking
transparency as another historical problem.

Japanese money supply growth, measured using M3+CD YOY% Change,
and M3 YOY% change for others (source Bloomberg).

'91-'97 1997
Japan 3.80% 2.70%

US 3.40% 7.30%
Germany 6.70% 7.20%
Canada 5.50% 4.90%
France 1.13% -1.62%
UK 6.89% 11.00%



To: Bilow who wrote (11148)12/9/1997 10:55:00 AM
From: Mike M2  Respond to of 94695
 
Carl, low interest rates and easy credit encourage overinvestment see SE Asia and Japan or overconsumption-see U.S.. The low rates encourage the public to "invest in" the stock market. How many times have you heard someone say "where else are you going to put your money" to them the stock market seems like the only game in town. they never stop to wonder to whom will they sell? Who is left to perpetuate the trend now that everyone is convinced that they should be in the stock market? Mike