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Technology Stocks : INTEL TRADER -- Ignore unavailable to you. Want to Upgrade?

To: Gersh Avery who wrote (5409)	2/4/1999 6:37:00 PM
From: MonsieurGonzo	Read Replies (1) \| Respond to of 11051

Gersh; RE:" l'argent " Reports now surfacing that Rubin had asked the BOJ to sell a bunch of new "JGB" - Japanese Government Bonds; ie, "print money"... "TOKYO, Feb 4 (Reuters) - U.S. Treasury Secretary Robert Rubin has urged Japan to include in its economic stimulus measures the direct underwriting of fresh government debt by the Bank of Japan, a major Japanese daily reported on Thursday. Asahi Shimbun reported in its Thursday morning edition that Japanese Finance Ministry officials told Prime Minister Keizo Obuchi on Wednesday that Rubin had unofficially proposed at the recent World Economic Forum that Japan boost its money supply to help pull its economy out of recession. Rubin's proposals, made to the ministry officials and to Koichi Kato, a senior member of the ruling Liberal Democratic Party who attended the Davos forum, included such policy measures as having the central bank directly underwrite government debt, the newspaper said." Today's stock declines appear to have been sparked by Merrill's Kurlak downgrade of semis, and neutral stance of the FED. It does demonstrate that folks needed little excuse to take profits. With no exit into stocks or bonds today, Gersh - folks were buying GOLD. >Seems to me that the Japanese are tapping the reserves (US bonds) with the result of lower bond prices. So, Greenspan has kept the inter-bank lending rates unchanged. But by Rubin's action, encouraging the JGB's to tank, and BOJ selling of our TYX's to cover... ...et voila ! our dynamic duo have effectively increased the cost of investment kapital, reducing stock market liquidity - while keeping "commercial rates" unchanged. Boils down to sort of a half-ass interest rate hike (^_^) Tune in tomorrow for another interpretation ! -Steve