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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?


To: GuinnessGuy who wrote (2852)4/3/1998 10:17:00 AM
From: Stitch  Read Replies (2) | Respond to of 9980
 
Craig,

<<it should be implemented in such a way that the cut declines with time. Perhaps something on the order of a 20% negative cut[in this example you'd have 8%-20%=(-12%)] with the cut declining by say, 2-4% points each month >>

I don't think this would give you the immediate injection the Japan economy needs. People would just delay purchasing until the full implementation wouldn't they? I know I wouldn't buy a car until the full decline was realized.

Best,
Stitch



To: GuinnessGuy who wrote (2852)4/3/1998 10:40:00 AM
From: Worswick  Read Replies (1) | Respond to of 9980
 
In case you haven't seen this yet...the incredible just happened.

biz.yahoo.com



To: GuinnessGuy who wrote (2852)4/3/1998 11:52:00 AM
From: Sam  Read Replies (1) | Respond to of 9980
 
Craig,
The problem with the tax cut is, I think, this: that it would work if one of the premises of most modern economic theory that "rational" people will buy buy buy when the cost goes down, and they have more money in their pockets. However, though this premise may work in the US right now, or perhaps in Europe, in a culture that is conditioned to save save save people do not just go out to buy buy buy just because prices fall fall fall or they have more money money money. Why are the people in this aging society going go out and buy buy buy? Is this what they are really waiting with baited breath for?

(Apologies for the stutter stutter stutter.)