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To: Math Junkie who wrote (1056)	9/15/1998 3:12:00 PM
From: Wally Mastroly	Respond to of 15132

Good point- makes sense. Cut taxes in Japan to stimulate spending, etc. It might be prudent to do so before they slip in to a depression...

To: Math Junkie who wrote (1056)	9/16/1998 2:34:00 PM
From: Hank Stamper	Read Replies (1) \| Respond to of 15132

"Maybe stimulating consumer demand in the U.S. would help Japan a little, but I would think that much more effective would be for Japan to roll back the consumer tax increase they put in last year. " Japan would have to do that and more. One of the key issues for Japan and other SEA countries is the savings rates. The population of Japan saves an average of 40% of income! What that means is that there is a huge pool of capital available, cheap, for government and corporate financing. The pool was too big and too cheap and was used most inefficiently. This financed the real estate boom and bust. And, it financed much industrial expansion that was simply irrational--i.e., it lacked productivity. Much of the cheap money went also into un-needed infrastructure. Ciao, David Todtman