VZCZCXRO9892
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #0757 0800337
ZNR UUUUU ZZH
P 200337Z MAR 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 2725
RUEKJCS/SECDEF WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA PRIORITY
RHHMUNA/HQ USPACOM HONOLULU HI PRIORITY
RHHMHBA/COMPACFLT PEARL HARBOR HI//N541// PRIORITY
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA// PRIORITY
RUHBANB/OKINAWA FLD OFC US FORCES JAPAN CP BUTLER JA PRIORITY
RHMFIUU/USFJ PRIORITY
INFO RUEHFK/AMCONSUL FUKUOKA 6756
RUEHNH/AMCONSUL NAHA 9141
RUEHNAG/AMCONSUL NAGOYA 5241
RUEHKSO/AMCONSUL SAPPORO 7352
RUEHOK/AMCONSUL OSAKA KOBE 0422
RUEHBJ/AMEMBASSY BEIJING 2308
RUEHMO/AMEMBASSY MOSCOW 2175
RUEHUL/AMEMBASSY SEOUL 8354
RUCNDT/USMISSION USUN NEW YORK 8920
RHEHAAA/NSC WASHDC
UNCLAS TOKYO 000757
SIPDIS
SIPDIS
STATE FOR I/RF, PA/PR/FPC/W, IIP/G/EA, EAP/PD, R/MR,
EAP/J, EAP/P, PM;
USTR FOR PUBLIC AFFAIRS OFFICE;
TREASURY FOR OASIA/IMI;
SECDEF FOR OASD/PA;
CP BUTLER OKINAWA FOR AREA FIELD OFFICE;
PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR
E.O. 12958: N/A
TAGS: OIIP KMDR KPAO JA
SUBJECT: TOKYO MEDIA REACTION - U.S. ECONOMY
1. LEAD STORIES: Top stories on Thursday morning
included the Upper House rejection on Wednesday of the
second GOJ nominee for Bank of Japan governor.
2. "U.S. Economic Management Dependent on Rate Cuts"
The business-oriented Nikkei editorialized (3/20): "The
U.S. appears to be taking full-scale money-easing
measures to cope with the economic slowdown and
financial confusion there.... While concern about
inflation remains, the U.S. continues to be dependent
on the Federal Reserve Board in dealing with the
economy.... The effect of an additional rate cut may be
limited, as it may not be able to supply enough funds
to the financial institutions that are facing credit
uncertainty. The recent rescue of Bear Stearns by both
the government and private sector demonstrates the
seriousness of the financial crisis.... The U.S. may be
forced to inject public funds into financial
institutions to deal with the subprime mortgage
problem, which is the source of the trouble."
SCHIEFFER