Tuesday April 20, 7:17 pm Eastern Time IMF sees deepening slump in Japan, urges reforms (Adds market reaction in para 5, more Mussa quotes)

WASHINGTON, April 20 (Reuters) - Japan's recession is deeper than previously thought and there is little hope of recovery in the world's second-biggest economy before next year, the International Monetary Fund said on Tuesday.

In its latest World Economic Outlook, the fund said Japan's economy would shrink 1.4 percent this year -- worse than the 0.5 percent drop forecast in December -- and rise a slim 0.3 percent next year.

But IMF chief economist Michael Mussa said the forecasts had an ``unusually high degree of uncertainty.''

``We do not yet see clear evidence that we have got a turning point in Japan.

http://biz.yahoo.com/rf/990420/bu1.html

Gee. that's funny. Why...only yesterday japan announced the GREAT NEWS!! that the slump was over.

Monday April 19, 4:32 am Eastern Time Japan economy has stopped worsening--MOF's Tanami TOKYO, April 19 (Reuters) - Japanese Vice Finance Minister Koji Tanami said on Monday that his ministry shared the view of the Bank of Japan (BOJ) and the Economic Planning Agency (EPA) that Japan's economy has stopped worsening.

Asked about the BOJ's view, reiterated by central bank Governor Masaru Hayami earlier on Monday, that Japan's economy has stopped worsening, Tanami told a regular news conference: ``We share that view with the Economic Planning Agency and the Bank of Japan. The worsening in the economy has stopped.''

http://biz.yahoo.com/rf/990419/c0.html

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What a bunch of freaking rubes.

The IMF, alias: destroyer of economies, sees no end in sight, while the MoF, let's loose a big Whewwww! Great News!!

BWAHAHAHAHAHAHAHAHAH!

This gets funnier by the minute.

-- Paul Milne

If you live within five miles of a 7-11, you're toast.

-- a (a@a.a), April 21, 1999

Answers

Something tells me Our Man Milne would not use the expression "freaking rubes." He doesn't usually hesitate to go with an R-rated soundtrack.

Are these legit Milne statements?

The following sentence cracked me up: "In its latest World Economic Outlook, the fund said Japan's economy would shrink 1.4 percent this year -- worse than the 0.5 percent drop forecast in December -- and rise a slim 0.3 percent next year."

...will *rise* next year??!! Are these guys on drugs? If Japan's economy is shrinking before y2k hits, what's it gonna do *after* y2k hits?

Economists are the dumbest fuckin' rubes around!! (Sorry 'bout the language--that was for Paul.)

-- rick blaine (y2kazoo@hotmail.com), April 21, 1999.

Here are two relevant articles: (the Tokyo one was on CNN's page 30 minutes ago, now it's gone: but the link still works)

Russia defaults on 1.3 bil. debt and

Nikkei Down

Russia was just approved for more World Bank $$ the other day.

-- lisa (lisa@work.now), April 21, 1999.