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To: limtex who wrote (11583)	6/17/1998 11:56:00 AM
From: Ramsey Su	Read Replies (1) \| Respond to of 152472

limtex, I read an excellent article once about the 4 phases of bad debt: denial, panic, confrontation and absorption. Japan had been in denial for years so there really wasn't much panic. They have tried to confront the problem in their half-ass manner, hoping that time will bail them out. I guess there is going to be another "new and improved" package to be announced in the immediate future. What the article pointed out was that the absorption phase is the most painful. The market is reacting today as if the problem is over while the true crunch is just starting. The Fed supposedly spent about $1 billion or so supporting the yen the last couple of days. Back in April, BOJ drained about $10 billion from their reserve to support the yen. Wonder what is Soros doing these days? In the mean time, earnings keep dropping like a rock while the Nasdaq, DOW and S&P500 are all still up in the 10% range for the year. Mutual fund inflows remain strong. I also read that ever since the Asian problem started last year, there had been about $700 billion that flowed into the US markets from Asia. If this figure is remotely true, that means more money came in from Asia than all the baby boomers combined. Really hate to see what the impact is when this money goes back home when their respective markets stabilize. May be we should hold off on that reservation. Ramsey