John Rosser writes Tuesday Oct 13,98:
BTW, it may well be that we have seen the bottom of the market. Japan has made a bank bailout deal finally, which is pleasing the Asian markets (as well as the US's).
Doyle According to press reports about 360 billion, but other reports say 400 to 550 billion. Obviously the terms are in secret. The Japanese banking problem has been estimated at over one trillion. If the bailout is one half the need then the markets might look at this with a jaundiced eye. Especially as profits fall. This puts Japan in a positive postion with respect to the U.S. Doesn't it. Why would a stronger Japan want to cooperate with the predatory U.S. banks. Aren't they psychologically in a depression already? Whatever the state plans are.
John Rosser: The other hidden factor, not mentioned by anybody recently, behind the Fed's interest rate cut has to do with China. It is coming out that this was coordinated with Tokyo and it was planned that the yen should go up and the US dollar down. Given the peg of the Chinese yuan/renmimbi to the dollar, this effectively devalues the Chinese currency vis a vis the yen, something the Chinese have wanted and threatened to do on their own.
Doyle That is very interesting. This indicates that the U.S. must not fall into a recession, because the Chinese need to sell to us. This brings up the issue of panic in the markets. Are the world markets already too far into fear to spend? I watched the nightly business report last night on PBS and there was certainly fear in those eyes last night. This is US fear not external fear. Grieders article in the Nation makes the point that once the collapse is happening in earnest no one spends.
regards Doyle Saylor