> No, the crossholdings have worked remarkably well. The Nikkei at 9000
> still means that total market capitalization is somewhere around 65% of
> Japanese GDP -- comparable to the EU. The US figure is still somewhere
> around 115% or so, I think, implying that there's plenty of room for the
> Dow to fall further.
That's a remarkable figure, and supports your point well against my unsupported speculation.
If falling equity prices aren't the source of reserve requirement problems for Japan's commercial banks, though, what is the BOJ trying to accomplish? Support share prices themselves? Try something new? Precipitate a crisis?
Apropos of Paula's initial post, Randall Forsyth wrote in _Barron's_ today:
What can be said with certainty is that the BOJ's decision has
been a disaster for the Japanese bond market.
For the first time, the government Friday was unable to attract
sufficient bids for an auction of $14.6 billion bonds.
So the non-bank side of the bond market, insurers, I guess, are voting against the stock purchase proposal with their yen.
Where's the wa in that?
Chris