The New York stock market remains volatile, even after rebounding from its worst-ever decline in points that was posted April 14. Following the crash, the Tokyo stock market also nosedived; it is troubled by even more jitters than Wall Street. Some analysts say the recent replacement of some of the stocks linked to the Nikkei average, the leading market gauge, is responsible for the instability in Tokyo; in fact, however, it stems from the nagging uncertainty over Japan's economic future.

Until it crashed, Wall Street had experienced an excessive boom, that involved mostly technology stocks. Adjustment was imminent. Since June 1999, the Fed has raised interest rates five times. On the stock market, high-tech stocks have remained unaffected by higher interest rates, although traditional blue-chip shares have fallen.

The recent adjustment was inevitable -- and desirable. The U.S. economy is still basically healthy, with the unemployment rate remaining low in the 4-5 percent range. Industrial productivity is high and prices are stable. The "New Economy" continues to prosper, despite a growing U.S. trade deficit. There are no signs that capital inflows from Japan have started flowing back.