Japanese Shift Cash Out of U.S. Investments

[TuskCracker]

.
Many would say this is really a story on the United States.
.


Japanese Shift Cash Out of U.S. Investments
By MARTIN FACKLER
Published: November 23, 2007

TOKYO, Nov. 22 — Many in Japan are starting to speak of “quitting America,” but they are not talking about a rise in anti-American political fervor. Rather, they mean a move away from American investments that is altering global capital flows and helping to weaken the dollar.


........................................ on and on ...

Partly this “quitting America” — called beikoku banare in Japanese — reflects an increasing sophistication of Japan’s investors, who embraced mutual funds only a decade ago and are still learning to diversify. But it also offers one more sign that the world does not depend as much on the American economy as it once did.

...............on and on ..........

[Elizabeth van Kampen]

Hi TuskCracker,

I guess that this is the article in the New York Times, you are talking about:

http://www.nytimes.com/2007/11/23/business/worldbusiness/23yen.html?pagewanted=1&_r=1&ref=asia

[Astroboy]

Yeah... "US Dollar" seems to be sinking, and "Euro" is rising.

World economy is much more interdependent than before.

But where is Japanese YEN?

[Pachipro]

For now the "Yen Carry Trade" is still quite strong and although not as weak as it was this past summer, the yen is holding it's own. The dollar, on the other hand will continue to fall throughout 2008 while other currencies get stronger. It will fall, by design, until it finally collapses.

[Astroboy]

For now the "Yen Carry Trade" is still quite strong

Yeah, I read some articles about "YEN carry trade". It said that the World's Bubble economy was partly caused by "YEN carry trade" because of its exteremely low interest rates.

BOJ prime rate is still 0.5%.... interest rates for my fixed deposits are MAX 1%
So it's understandable for Japanese housewives want to keep money at European banks or other off-shore banks.