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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: dougjn who wrote (6186)	7/4/1998 10:38:00 PM
From: Zeev Hed	Read Replies (2) \| Respond to of 10921

Doug, if you are right, and Japan will just muddle through few years of sub par economic growth, rather than free their financial markets from the Albatros debt, then they are committing a grave miscalculation. If Japan's domestic demand does not increase, they will leave the rest of the rim in the lurch, the US alone cannot provide an outlet for the excess capacity in the rim, Japan must absorb some of this supply. The rim will have to cut capacity, but if they cut out all excess capacity, the hit will be too large. If Japan does not increase its domestic demand, down goes the rim into a multi year depression. The only problem with that for Japan is that 40% of its export goes to the Rim countries, this export will be halved or worst, decimated, causing Japan itself to go into a deep recession if not a full fledged depression of its own. Japan has to jump start its economy not just for the rim countries, but for its own good. The end result of a depression in Asia will be reinstatement of trade barriers, Asian xenophobia and world wide economic slow down. I think that the Japanese leadership can see that as clearly as anyone else and will not let the train wreck go unchecked. Zeev