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

To: Zeev Hed who wrote (3158)	4/15/1998 6:58:00 PM
From: Alias Shrugged	Read Replies (1) \| Respond to of 9980

Zeev - Is the yen destined to depreciate substantially against the dollar? Seems like the massive bad debt and probable (very likely?) additional company bankruptcies have not yet been reflected. or are other changes in currencies masking the decline? Finally, with all of the ASEAN trading partners having already devalued their currencies, seems like tremendous pressure on Japan's currency. What is downside to devaluing; wouldn't this make it easier for the ASEANs to repay their yen-denominated debt to Japan. Help me understand this currency thing. Seems that, at a basic level, a country's currency reflects its economic wealth - real and perceived. Money poured into investments/infrastructure/overcapacity which do not produce a return results in diminishment of wealth. Obviously, money loaned to neighboring countries which cannot/will not be repaid also reduces wealth. Is BOJ terrified of yen savings leaving the country, further depressing the yen and starting a run? The more BOJ strengthens the yen vs. dollar, the more attractive the dollar will appear to yen holders. Let me know what the turnips say, or have they composted away to nothing? gg Mike PS: This a truly a most excellent thread - thanks to all of the regular contributors.