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To: accountclosed who wrote (1552)5/15/1999 1:01:00 PM
From: Henry Volquardsen  Read Replies (1) | Respond to of 3536
 
Thanks for the links.

The Japanese govt has been floating trial balloons of this sort for awhile. Remains to see how it is implemented but it is largely a political gesture by the Japanese. Some factions in the Japanese govt have been making comments about how western speculators and 'free markets' are responsible for the Asian economic difficulties. They have argued for direct lending to support these economies. Frankly, I think there is a danger that the lending will just prop up the current bad practices and delay reform. Also, given the state of the Japanese economy, if Japan is going to guarantee Asian debt who is going to guarantee Japanese debt?