(Cherry trees in winter)Like Wandering Stars to the Hell
(Comme les étoiles errantes de l'enfer)
SECTION I: Snowing Now, Baby
It is now snowing in and around Tokyo.
At last, weathermen and weatherwomen got back their credit, since they have been predicting the snowfall since last Sunday.
SECTION II: Oh, Come on! Old Friends
Chinese citizens interviewed on the street of Shanghai accused in real earnest of that Chinese manner or unmannerliness, if I may say so, their Government and American money market, as stock prices plunged.
A Japanese critic as well as a Hong Kong economist said that it was just a burst of the bubble in the Shanghai Stock Market.
But, when announcing a sharp decline of the Dow Jones Index, a pretty female news caster as well as a youthful male news caster, each in a different TV station in Tokyo, alike raised a pitch and a volume of their voice.
Indeed, between 5% and 10%, the global stock markets suffered a sharp fall of prices and indexes yesterday, including Tokyo Stock Exchange.
However, I have no intention to destroy the global money market, including New York Stock Exchange.
I don't think that the God has intention to destroy the global money market, including New York Stock Exchange.
But you had better refer to the transition of transactions there some time, for example:
http://www.nyse.com/about/listed/lcddata.html?ticker=DJI&fq=D&ezd=1Y&index=5
And also refer to the historical chart below, while remembering that even a chairman of FRB once thought that it must have been 6,000 dollars instead of 10,000 dollars.
Indeed, rich men living on NYSE indexes can be humbler by one-third of their current arrogance index.
SECTION III: Sub-prime Loan Analysis, Folks
There are some who think that the 9/11 terror is an act of conspiracy by the US Government.
But, there are few who think that the sub-prime loan problem is an act of conspiracy by the US Government.
Which do you think costs more, the 9/11 terror plot or the sub-prime loan plot?
My advice is that you must assume that those experts both in national security and financial regulation lack some critical ability today instead that they have super ability to perform any plots today.
It is because that crazy increase in money has made their mind dull and mean, indeed so despicable.
Now, remember that as I wrote on December 12, 2007 in this blog:
If two million US citizens cannot pay, say, a 200,000 dollar loan each, the total default amount will be 400 billion dollars.
But, the total loss of major US financial companies during the third and fourth quarter in FY 2007 was just 89.6 billion dollars.
Even the total loss, including those in Europe and Japan, for the same period reached also just 134.6 billion dollars.
The fiasco is yet to be fully concluded.
It is also because now higher 10% of US households has an asset of one million dollars or more.
Of course, the number of lower 10% of US households is almost 7.5 million as with the richer 10%.
So, referring to my description on December 12, the scale of potential financial fiasco in the US society is estimated to be 1500 billion dollars (= 7.5 / 2 x 400 BN).
In addition, as the "monoline" credit-guarantee companies are losing their credit base, namely sub-prime loans, the US municipal bonds worth 430 billion dollars backed by them are going to face a big trouble.
(For a rumor on an effect on Japan, out of ill will or good will:
http://www.marketwatch.com/news/story/japanese-financial-firms-may-have/story.aspx?guid={30313BBD-E177-43E8-BE0F-B26CB8AAB46A} ）
But most significantly, there is a horrible possibility that those upper 10% of US households may come to think that they can survive and get richer by buying lower priced stocks and other assets abandoned by the poorer if the Great Depression comes.
This is the most sinful plot, if a conspiracy is there in the sub-prime loan problem.
So then, they did not need the 9/11 terror conspiracy if they could do the sub-prime loan conspiracy in terms of making the rich richer and the poor poorer so as to monopolize the power in economy as well as politics.
SECTION IV: Points of Issue and Solutions, Gentlemen
The sub-prime loan problem caught a big attention when a rate of households that lost a solvency for their house loan jumped from 5% to 15%.
Everything then happened as a chain reaction through credit interdependence and unsupervised securitization for vast sales.
You cannot solve the problem trying to help, for example, Citibank Group (with a $28.6 bn loss) and Merrill Lynch (with a $22.5 bn loss) in the under-stream.
You have to concentrate on the upper stream of the problem.
As one of former FRB vice chairmen suggested today in a Japanese newspaper, the US Government should establish a public organization to buy a hosing loan and a home mortgage from each poor household.
As there are 10 million hardworking Hispanic (though yet not legal) in the U.S. today, the value of those houses will recover some time soon, say, in a decade, since they will like to buy even second-handed houses to live long in the U.S.
And, it is also expected in the near future that millions of Chinese and Indians will also come to America for sight-seeing and part time jobs; they will also like to buy even second-handed houses to live long in the U.S.
Indeed, the US Government should establish a public organization to directly buy a hosing loan and a home mortgage from each poor household at the brink of bankruptcy or losing their residence.
* * *
Now, the snow has stopped.
The NHK TV channel is live broadcasting parliamentary proceedings from the Diet Building in Tokyo.
Indeed, what is required of the US President is not physical energy and psychological toughness to carry out a Presidential Election Campaign for two years but physical strength and mental soundness to attend congressional sessions, hearings, and Q&A dialogues in the Congress every week being televised nationwide.
And, now, is it snowing in South Carolina, (gentle-)men?
(In 2007, nine million foreigners visited Japan.
Some of them may be actually viewing EEE Reporter.
But, how can they interpret Japanese TV news program?
The Japanese Government should think about internationalization of the Japanese language sooner or later.
It will lead to solving the mismatching of cultural value and the misunderstanding of the patriotic pride of the Japanese race in performing its traditions, including whaling and cherry blossom viewing.
Indeed, there is always a symbolical entity that represents, say, a nation or the divine power of a nation in addition to the beauty of its civilization.
[So, don't come back to Japan after buying a home in, say, Harlem, New York, the U.S. ])
"They are like trees that bear no fruit even in autumn..."
(Sie sind wie Baume ohne jede Frucht im Herbst...)