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Non-Tech : Derivatives: Darth Vader's Revenge -- Ignore unavailable to you. Want to Upgrade?

To: Sam who wrote (788)	2/5/1999 9:11:00 AM
From: Worswick	Read Replies (1) \| Respond to of 2794

Hello Sam. I don't really know why the Japanese are doing this.. except that simply stated in the Category 2-4 bank loans held by Japanese banks they are having to reserve vast amounts of money to stay in business under new government guidelines. Category 3 loans, for instance, have to be reserved by 50-75% of the loans. 100% of category 4 loans must be reserved (the borrowers hopelessly in default. At that a correspondent of mine in Tokyo responded to my querry this am, "..What is going on is a series of mergers - ailing, but big Fuji Bank absorbing the collapsing Yasuda Trust Bank, the Chuo Trust Bank being absorbed by another city bank. The government does not want the 17 city banks to collapse so it is forcing mergers. All the major banks are selling their headquarters buildings and leasing them back (from the Saudis and the Goldman's of this world). The banks need the cash. Even basket-case Nissan has resorted to that". I hope this withdrawal of their marbles from our markets isn't the fabled "gasp....yet another shoe. The final shoe". How many shoes can we survive Sam?? Is Alan going to have to run down the street and get more dollars printed? Will they be enough? Will "painting the tape" in the futures markets hold this whole goddamned thing together. Will the good ship lollipop sink? Best to you, Clark Clark