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

To: Lazarus_Long who wrote (12915)	1/9/1998 6:01:00 PM
From: Dwight Taylor	Respond to of 94695

James-- re: Jap bond sales. Released 1/8/98 TOKYO (Nikkei)-The Finance Ministry on Wednesday decided details of measures to inject public funds into financial institutions so they can boost their capital. The government will acquire preferred stock, subordinated bonds, subordinated loans and subscription certificates from the financial institutions. Financial help from the Deposit Insurance Corp. will be extended to the institutions at their request. Unanimous approval from a seven-person inspection body will be required before public funds are extended. The ministry will send a bill Jan. 19 to the Diet, with the measures set to come into force just after the bill's passage. The corporation will use government-guaranteed loans worth up to 10 trillion yen for purchasing the assets. If the loans are not sufficient, it will sell 3 trillion yen worth of government bonds. The deposit insurance body will acquire assets not only in banks that take over failed banks' operations but also in ordinary financial institutions, excluding extremely troubled ones. Preferred stocks will be purchased at market prices and sold after the institutions restore sound management. Ben

To: Lazarus_Long who wrote (12915)	1/10/1998 10:45:00 AM
From: gregor	Respond to of 94695

James: It would be ludicrous to think that all of a sudden interest rates are going to turn around, start heading up then we have the resumption of the bull market, with a stock market rally. Because we are heading for an inverted yield curve, something is going to have to give: close to flat, now ,out ten years. The likely senario to me is that the Feds cut short term rates once or twice by June; and this will be the impetous to spur on the resumption of the bull, stabalize SE asian currencies, and therefore some of the negative capital flows in equities markets. Truth be known greenie IMO should have already acted at least once..gregor