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: Tommaso who wrote (12270)	12/23/1997 10:35:00 PM
From: Zeev Hed	Read Replies (3) \| Respond to of 18056

Tommaso, I am still tying to understand the Japanesed financial psyche. They gave a stingy tax cut of about 1 or two trillion yen (I am not sure what the last figure is and I wish they were sure), now they are going and buying preferred stock in their banking system to the tune of 3 trillion yen. If I understand correctly, these are simply to shore the banks balance sheets, I am not sure if they can use it to lend out more, since that should bring some of these institutions barely to the desired 8% equity base of asssets. So, this money will be forzen, correct? So they inject $2 trillion and soak 3 trillion net soaking is 1 trillion, how do they expect to get this engine restarted? Zeev