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To: Joseph G. who wrote (8584)	10/14/1998 10:52:00 AM
From: Defrocked	Read Replies (1) \| Respond to of 86076

Japanese Bank Lending to Debt-Ridden Industries Drops .8% (Bloomberg) The good news from this unlinkable story: "Japanese bank lending to real-estate, finance and construction companies, the three industries hardest hit by bad-loan troubles, dropped 0.8 percent in the year ended March 31" said private think tank Tokyo Shoko Research. The bad news: Lack of loans and cross-lending by banks may increase credit pressures on the same companies, increasing the bankruptcy rate. Percent of Loan portfolio to these three industries: Nippon Credit 62% LTCB 46.5% Toyo Trust 45.1% BTW Japan stocks down again last night, flirting with 13,000 again. Banks were hit in particular. Talk is that the conditions attached to acceptance of public funds for a bank rescue make the airing of dirty laundry too public. Furthermore, the $500 billion rescue package is viewed by many as addressing only half the problem in the banking sector. These monies do not address of course emerging (submerging is more accurate<ng>) problems in pension funds and insurance companies in Japan that are largely unrecognized by existing accounting standards. While US stocks rally this morning, it seems that I am "preoccupied" with Japan. Somehow I just cannot ignore these problems which could make the recent move to liquidity by many global investors seem "insignificant". My outlook over the next six months is obviously incongruent with existing US equity valuations. BWDIK.