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Strategies & Market Trends : JAPAN-Nikkei-Time to go back up? -- Ignore unavailable to you. Want to Upgrade?

To: Step1 who wrote (1892)	5/19/1999 3:26:00 PM
From: Angelo Ferraro	Respond to of 3902

it would seem that a couple of giants in the economics profession (Krugman, Dornbusch) also agree with the recent negative sentiment expressed here. "...Krugman writes: "The story of Japanese macroeconomics in the 1990's is that of the pump that refused to be primed: of ever-growing budget deficits that stave off collapse but do not generate self-sustaining recovery. Things will have to get considerably worse before they get better." Dornbusch says that when you consider Japan's high public debt, now 130 percent of gross domestic product, the continuing huge budgetary deficits (10 percent of GDP), and Japan's massive unfunded pension liabilities, you have "a prescription for disaster." Dornbusch concludes: "Japan could become the biggest financial crisis of the postwar period. Japanese bonds deserve a junk rating."..." cbs.marketwatch.com

To: Step1 who wrote (1892)	5/19/1999 10:15:00 PM
From: Ramsey Su	Read Replies (1) \| Respond to of 3902

Stephan, I have heard someone saying we are in the information age. The way I feel now, misinformation or lack of information age may be more appropriate. Are you aware that most experts on CNBC these days have already concluded that Asia had hit bottom and is rebounding faster than expected? Japan has not been in the limelight for a while. Based on what I read here and there, Japan is pretty much in the same sad shape. While our expectation may be widely different from reality, the potential of the market being blind sided is huge. What do you think could be a surprise from Japan, something of significance which would trigger the same sell off as the Russian default last year? Ramsey