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To: Zeev Hed who wrote (15469)	4/19/1998 9:38:00 PM
From: Bearded One	Read Replies (1) \| Respond to of 18056

A question about these "postal accounts" in which the Japanese have all this money stocked away... Since money like that is nothing more than numbers in a computer, isn't the effect of "opening up" these accounts the same as just printing a whole bunch of Yen and giving it to Japanese citizens? If the Japanese were going to increase liquidity, why would they do it this way? Thanks.

To: Zeev Hed who wrote (15469)	4/19/1998 9:53:00 PM
From: yard_man	Read Replies (1) \| Respond to of 18056

Interesting thought on the banks.

To: Zeev Hed who wrote (15469)	4/20/1998 5:44:00 AM
From: John Hunt	Read Replies (1) \| Respond to of 18056

Japan price data points toward deflationary spiral biz.yahoo.com << Finally, things are moving in Japan's economy. Unfortunately, they're going in the wrong direction. The Bank of Japan released clear evidence of that on Monday when it reported that deflation, the phenomenon of falling prices that erodes corporate profitability, is spreading through the world's second-largest economy. The domestic wholesale price index for the first 10 days of April showed prices falling 2.1 percent from the same period a year earlier. Import prices, which fell in yen terms as the currencies of Asia plunged in the wake of a regional economic crisis, collapsed a jaw-dropping 7.4 percent. ''Japan is teetering on the verge of a deflationary spiral,'' said Andrew Shipley, economist at Schroder Securities Japan Ltd, referring to an uncontrolled fall in prices that destabilises the economy. >> Zeev, I have also seen the bank mergers as a sign of possible weakness. I believe that I have seen some references to JPM's Asia exposure being larger than reported. I will try to find a link if I can. John

To: Zeev Hed who wrote (15469)	4/20/1998 9:25:00 AM
From: Mike M2	Read Replies (1) \| Respond to of 18056

Zeev, you make a good point with respect to the possibility that banks have been hurt by SEA to a greater extent than they have let on. I think this is the case. Is the damage significant enough to compel mergers? I don't know but it is an interesting thought. Citibank has a history of getting itself into trouble. Mike