Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Cymer (CYMI) -- Ignore unavailable to you. Want to Upgrade?

To: pat mudge who wrote (18325)	7/2/1998 1:32:00 AM
From: Elroy Jetson	Read Replies (3) \| Respond to of 25960

I graduated from UC Berkeley in Econonics for whatever that's worth. In my opinion, protecting the shareholders of failed banks is not the way we handled our "Resolution Trust Corp" but it will work well enough, and is probably more appropriate to their economy. Japan is different because of their interlocking shareholdings. Wiping out shareholders equity in one bank would likely imperil the balance sheet of other banks or insurance companies who are major shareholders. As in the US, the taxpayer must finance the bailout - but more completely in this case. Japan is a very wealthy country which can easily afford to bail out their banks. Until now they have chosen to maintain the fiction that this was not necessary. As in the US, re-liquifying their banks will provide the basis for a sound recovery. Some will complain that this solution does not spoon out enough "market discipline" to prevent an re-occurance - but Japan is a different country and they are entitled to their own solutions.

To: pat mudge who wrote (18325)	7/2/1998 6:15:00 AM
From: j g cordes	Read Replies (3) \| Respond to of 25960

Pat, the economic comments on Japan vs the US, Asia and the World can take so many turns. While our banks were in disaray we wanted them to bail us out, remember the time frame when they bought Rockefeller Plaza and nearly everything else for sale? Many of our companies will find similar poor investments in Asia, local control and decision wisdom even caught the British with their tea leaves down in 1776! It works both ways... my comment for the 4th. The Japanese have saved, as we are being encouraged (talk is cheap).., for retirement. They put their money in banks and stocks. Their stock market crashed, a lesson we'll learn also, while our markets took the see-saw high road... now we're sitting three feet off the ground full of wisdom and advice. We're telling them to spend their way out of recession and to grow their way into future prosperity. This, to some retired Japanese with bank locked savings, is much like telling our retired to buy roller skates and computers to uplift their good times at the old age home... and makes about as much sense. Their banking crisis is a lie born out of a social welfare conscience that stretches rules AND for those of less generous thinking.. some criminal activity as well. I was just wondering when the movie A Starr is Born, will be remade? Of course, we are and Asia is dependent on increasing commercial activity.. the game has to be played or there's no wealth created. Its for OUR good that by whatever technique, the currency systems come to parity and goods and services can flow both ways. Have to go... Jim