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To: ViperChick Secret Agent 006.9 who wrote (46426)	6/20/1998 2:19:00 PM
From: Dwight E. Karlsen	Respond to of 58727

good story, lisa. goes into more detail than I've previously seen. I read earlier in the week that currency "intervention" by governments has never worked. However, (now me speaking) it does provide a psychological pillow on which panicky traders can rest on temporarily. But we can see in the story you posted that the fundamental problems in Japan, ie non-performing loans, is the dagger hanging over Japan Inc. The US keeps saying "get rid of the loans, cut income tax rates". And Japan says "we'll get rid of the loans, and we will think about cutting tax rates". Then the next day, like yesterday, Hashimoto or somebody will say "we never promised to cut income taxes, but yes we do need to do something about those loans". they're being yes-men, but taking no action, and now we know why, as detailed in your article. you can't pull the wool over the financial market's eyes forever. It looks to me like Japan and Asia are going to be a very heavy yoke around the neck of the world economy for the remainder of 1998, and probably at least half-way through 1999. We may as well accept that and learn to live with what realities/opportunities this provides.

To: ViperChick Secret Agent 006.9 who wrote (46426)	6/20/1998 3:10:00 PM
From: Dwight E. Karlsen	Read Replies (2) \| Respond to of 58727

lisa sweetie, I see you've thought a bit about buffet since the announcement after the close friday. my 2 &cent is that buffet does what's good for berkshire-hathaway, and no doubt buffet generally makes shrewd moves. But I really don't see what he did as being very influential on sentiment. after all, even though buffet has always been a specialist in leveraging insurance companies, insurance companies are still kind of dull stuff in terms of sentiment. Remember how the market reacted to the UPS strike? Already drooping sentiment in the market if I recall, and that strike weighed on the market, even though UPS isn't a publicly traded company. What I'm getting to is the GM strike. Maybe it will be settled quickly, but maybe not. 115,000 workers sitting at home just isn't bullish. Not to mention the ripple effects. article on yahoo saying many railroads which are heavily dependent on the GM plants are being affected. Even if the overall economic impact is nil, the sentiment is not bullish. Maybe it will all be settled over the weekend, but I read that even if it is, it will take until mid-July before all the plants are fully operating again. The metal stamping plant which caused all this has been on strike since June 5th.