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

To: MikeM54321 who wrote (4388)	6/11/1998 10:10:00 AM
From: Step1	Respond to of 9980

Late night news, suicides up by 5.6% to 24,391 casualties and that is more than traffic casualities. They report a rise of 47% due to economical hardship. Number 2 headline tonight. Sorry Mike, I guess this is going to paint an even darker picture of Japan for you. later sg

To: MikeM54321 who wrote (4388)	6/11/1998 10:20:00 AM
From: MikeM54321	Read Replies (3) \| Respond to of 9980

>>The Nikkei declining toward 15,000 is a reason for concern in and of itself: below that level, many institutions that hold stocks on their books (allowed by Japanese accounting laws) will see unrealized losses. That is something that the government is loath to see. A spurt of public fund buying to prop up the index seems likely to be in the cards.<< As we all know from the Business Week article and Jess' recent posts, the banks in Japan are allowed to use their stock holdings as assets on the balance sheet. Well from the above statement, it appears that if Nikkei goes below 15,000 then an expense has to be taken on the income statement side. Jess referred to a Nikkei of 14,000 being of greater concern. Now it's all making more sense to me. If I'm not mistaken, yesterday there was an article in one of the Japanese newspapers concerning using public funds to prop up stock values. I can't find it now. But in light of the above, it makes a heck of a lot more sense why the government wanted to do this. It really adds credence to the problems Japan's banks may face if their stock market keeps going lower. By the way, the headline of the article was something along the lines of there being an outcry AGAINST using public funds to prop up the stock market. MikeM(From Florida)