Another obvious flaw in the great Japan Inc. model. Rather than expose themselves to a possible takeover, which would force "management" to actually produce results, all the companies just buy each other's stocks. And, of course, this screws the individual stockholders, since, as now, when the stock market tanks, everyone loses money. And not necessarily because the core businesses are doing that badly. Management here is a joke.
These are just paper losses that wouldn't matter except for the "mark to market rule" that has been heavily criticized for causing unnecessary constraint on cashflow and actually impeding actual business operations.
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herefornow at 08:00 AM JST - 12th January
Another obvious flaw in the great Japan Inc. model. Rather than expose themselves to a possible takeover, which would force "management" to actually produce results, all the companies just buy each other's stocks. And, of course, this screws the individual stockholders, since, as now, when the stock market tanks, everyone loses money. And not necessarily because the core businesses are doing that badly. Management here is a joke.
SaruTobi at 08:22 AM JST - 12th January
These are just paper losses that wouldn't matter except for the "mark to market rule" that has been heavily criticized for causing unnecessary constraint on cashflow and actually impeding actual business operations.