Hey Green, Japan, the land of the disposable chopsticks, is the number two biggest economy in the world, and the largets creditor. (We are the largest economy, yet the worlds biggest debtor nation).
What is significant about Japan here, is that at these levels, the banks of Japan, Mitsui, Tokia, Sanwa, Bank of Tokyo, BOJ, Diawa, etc are being squeezed to improve their own balance sheets. There is a legitimate fear too that the country could begin hauling in loans both domestically as well as foreign, and try exporting their way out of this decade long recession. The ramifications of that happening are obvious, and none healthy in terms of our own economy in the short term. Even the most bullish economists are now recognizing the potential of a prolonged global recession, though with some optimism, it is our hopes that our leaders will kick start a return to more health growth numbers going forward using the last remaining interest rates we have left for leverage. (Japans real lending rate is now 0%).
In talking with friends here in Ottawa, the word I am getting is this Q, will be the most challenging ever.
Some stability orders may return in Q4, but the outlook and visiiblity remain weak.
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