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

To: Zeev Hed who wrote (6901)	10/4/1998 6:29:00 PM
From: chirodoc	Respond to of 9980

Asian Business Watch ©1998 ABW Inside... "Its better to be approximately right than absolutely wrong"--Warren Buffet. Asian Business Watch--making sure you are approximately right! Japan in Deflationary Spiral... with stock prices at current levels, Japan's corporations will report valuation losses of ¥3 trillion for the September 1998 reporting period, while unrealized losses on Japanese bank Tier 2 capital is some ¥3~¥4 trillion, meaning they will have to shrink risk assets by some 3%~5% over the next six months. If all loan balances were to shrink by 5%, Japan's GDP would fall another 3%. With bank market capitalization at only ¥34 trillion versus NPLs of some ¥150 trillion, Japan's whole banking sector is effectively insolvent! (ABW--10/4/98)

To: Zeev Hed who wrote (6901)	10/4/1998 7:04:00 PM
From: Z268	Read Replies (1) \| Respond to of 9980

Zeev, Except their "communal sense" only applies to their own society. It's a question of self-interest. Japan has no motivation in spending its way out of trouble, because they are NOT convinced that this will do them more good than the West.