SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : American Presidential Politics and foreign affairs
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: TimF who wrote (29707)10/2/2008 12:50:52 PM
From: DuckTapeSunroof   of 71588
 
Re: "What really hit Japan was that you had banks continue to lend to "zombie corporations" after it was clear that they would never be viable again."

(Yes.. at the orders of the government. More 'national industrial policy' Japan-style! Instead of 'side-stepping' problems, which is what they hoped they were doing, they PROLONGED them and also worsened them.)

Re: "Instead of having the corporations go in to bankruptcy, they kept going for years and years and years, and the banks kept putting off recognizing that their loans where worthless."

Exact same thing going on right now in the halls of our Congress --- with the Banking Lobby in a concerted push to relax the 'Mark-to-Market rule' in our accounting law.

(The banks had absolutely *no problem* with mark-to-market a couple of years ago when sales were happening at 'bubble prices', because it allowed them to inflate their performance and valuation numbers... but now that sales prices are down suddenly mark-to-mark is "all wrong".) :-(

One other quick point about Japan: They have the HIGHEST NATIONAL DEBT (measured per-capita) of ALL of the world's developed countries... and one of the 'worst' (stagnant) no-growth demographic profiles out there.

Those are two perhaps EVEN MORE IMPORTANT reasons for why their economy has been becalmed for decades now....
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News