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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: Lee who wrote (20273)	9/10/1998 10:59:00 AM
From: James Strauss	Read Replies (1) \| Respond to of 50167

Lee: I'm now going to play Devil's Advocate regarding Japan's Bank Rate adjustment... It allows the Japanese banks to borrow at 1/4% and use those funds to make loans at one or two points higher... They can also use the 1/4% borrowed money to invest in overseas Gov't securities, specifically U.S. Treasuries paying 5% or more... They're following the same blueprint we used to bail out our Banking System in the late 80'S... I suspect that the Japanese banks will turn out to be a good long term investment if they follow the same type of turnaround that our banks had... Jim