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To: Moonray who wrote (14694)4/10/1998 2:40:00 PM
From: Jeffery E. Forrest  Read Replies (2) | Respond to of 22053
 
Uh-Oh.<G>



To: Moonray who wrote (14694)4/10/1998 4:50:00 PM
From: jhild  Read Replies (1) | Respond to of 22053
 
I caught this post over on the Asia thread from alert reader Barry Hall.

#reply-4027464

Taken from the referenced article in the current economist is this among other troubling observations about the Japanese economy. It is an interesting read.

Taken as a whole, the manufacturing sector is not too indebted, but the debt-equity ratio for non-manufacturing companies (debt as a percentage of shareholders' funds, an inverse measure of a company's financial strength) is 159%, high by any standards.

For the past few years, these debts have been manageable - thanks largely to the Bank of Japan's lax monetary policy. Indeed, some 60% of the increase in overall company profits in the recovery that has just ended came from lower interest costs.

economist.com