Japan Japan's political system, set up by former Dictator MacArthur, won't be able to turn things around anytime soon. He was full of praise for Japanese technocrats, but it's the SYSTEM, he stressed.
Europe Europe is sliding into default protectionism; they will drag their feet when told to comply with WTO judgements. Witness the trade-war over bananas.
U.S. Our savings rate is going negative and our stock market is overvalued. We're the motor for the world economy but it can't last forever. It was interesting that he said if there's a large correction, maybe then the Fed will learn to try to take on the overvalued stock market earlier. Somebody could have pointed out to him that this stock market is what's keeping things afloat, right? Lindsey's solution is a 10% tax cut - about $70 billion. Unfeasable, he admitted.
Lindsey said little about Latin America. I read in today's NYT that Brazil continues to walk the tight rope. Presumably to give the reader a little frisson, they wonder whether it will be another Russia or another South Korea? -------------- next part -------------- An HTML attachment was scrubbed... URL: <../attachments/19981222/a0421006/attachment.htm>