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

To: yard_man who wrote (16099)	4/11/1998 11:52:00 PM
From: Abner Hosmer	Read Replies (1) \| Respond to of 94695

Barry - That is just it. They hadn't proposed any tax cut, they hadn't made any committment. They just kept saying, "we'll do what we have to do...we'll do things our own way", etc. A lot of beauracratic speak while the Japanese economy is headed for a recession. I don't think the Japanese banking system can survive a protracted recession, at least not as we know it. The root of the problem between Tokyo and Washington is that Washington is saying, "hey, what's needed to get things moving is for people to CONSUME and SPEND. And that means TAX CUTS." Of course, Japan has long been determined to discourage domestic consumption, encourage savings, and export her way out of her late meltdown. At this point Europe and the US are determined that they are not going to carry Asia and Japan and to send the Japanese a message, they let them know that they could count on ZERO cooperation in supporting the yen. We saw the result when Hashimoto threatened to sell US treasuries and buy gold. I think Rubin and Clinton laughed in his face.