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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?


To: Ron Bower who wrote (6362)9/12/1998 1:25:00 PM
From: Derrick P.  Read Replies (1) | Respond to of 9980
 
I don't see the yen getting much stronger against the $US (and it may get weaker). I
hope we soon see the $US weakening against other major world currencies as I think
it necessary to prevent the 'crisis' from having a major impact on the US economy.
This would also aid recovery in HK and China.


A weaker dollar by itself is not enough. This would tend to reduce demand for foreign goods in the US. It must be coupled with an interest rate decrease. This will tend to stimulate the economy, increase demand, and ease pressures on foreign currencies and debt payments.
I agree with Zeev that the Fed will probably not ease until the US stock market is lower.

Best Regards,

Derrick



To: Ron Bower who wrote (6362)9/12/1998 7:55:00 PM
From: chirodoc  Read Replies (1) | Respond to of 9980
 
although i agree that japan is in the dumps
i disagree with your bleak outlook
they still have:
1. great competitive companies
2. hard working dedicated work force

problem is primarily a political one imho
i think if they get obuchi out and someone
like naoto kahn in
there would be a dramatic rebound
in sentiment and the economy
this is like the era
when we had our banks busted during the 70's-80's
and we lacked the political will
to change it
maybe you could liken it to the 30's except
that japan is still an affluent country
with poverty that approaches what we have in our
country during this great expansion
i think that buying japan in 6-12 months will
turn out very proseperous indeed
assuming obuchi hits the highway

curtis