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

To: Elroy Jetson who wrote (11776)	12/20/1997 11:01:00 PM
From: Cymeed	Read Replies (1) \| Respond to of 25960

<<China just reduced bank lending rates from 9% to 1% as Japan did.>> Elroy, I found that bank rate reduction in China to be unbelievable. Any typo error included ? China was bothered by the record high 25% inflation in 1995 (or 96?), associated with its hot economy (10% + growth). Unlike Japan, they can't reduce lending rates to that level, it will cause very high inflation again, because China's economy has decent growth potential but at the same time, it's been highly bottlenecked by infrastructure and raw material supply. Thanks for your informative posts re Japan Inc. I agree with you that, as a #2 economy in the world, Japan has not been a very responsible partner. Instead of elevating their economy by boosting their domestic demand, they choose to devalue its currency and export their problems to the world (or try to solve their problem by increasing exports). However, as you mentioned, their Nikk225 is near the disastrous level (15,000), under which will cause collapse of essential all banks. I am sure the government will try to boost their money supply and choose the correct path for solving their difficulty, which will be to stimulate domestic demand. So I am holding the hope that Japan will know what they are doing. It's their own interest at stake, more than the U.S.'s interest. The bank crisis in Japan and its tough pills are very hard to swallow right now. But over a longer term, it should be considered as healthy and correct. Yes, the Japanese governemnt is eating their words right now by blooming their deficit. But that seems to be the only way for them to come out of this crisis. I would say what they will do in Japan will affect a lot here. Let's all keep an eye on it. Especially try to watch and see if the Japanese government has a sincere desire to boost their own economy.