Thursday May 24, 2012

JAPAN NEWS AND DISCUSSION

Japan 'zombie' banks repay most of 1990s bailouts

Business Jun. 18, 2009 - 07:12AM JST ( 6 )

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6 Comments

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BeelzebubJun. 18, 2009 - 07:42AM JST

Unfortunately most of Japan's wealth is concentrated in real estate, and another bubble is about to burst. There's a huge glut of office buildings in the Marunouchi and Otemachi areas and tens of thousands of newly built condominiums are finding no takers. (Why should there be any? The population is declining and young workers can't even afford national health insurance let alone a shiny new home.) The bankes can juggle their books for a while but eventually the birds will come home to roost.

All the recent happy news from the stock markets, etc., making a show of "recovery" is a sham. The worst is definitely yet to come. One would be smarter to keep Krugerrands at home in a drawer than deposit savings in a bank or securities brokerage.
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rajakumarJun. 18, 2009 - 08:01AM JST

Japan nikkei 225 is 75 percent below its peak in 1989. US nasdaq is 60 percent below its peak in 2000, when it was 5000 something pts.

Where did this lost wealth go,it went to other nations and BRIC nations. Investments just moves to make money,then moves again to make money elsewhere.

Japan was lucky is 1989 because other nations was disorganised in economic matters.

USA was good until 2000,the companies started moving money and jobs to BRIC nations.

Also US spent 1000 billion USD on war fireworks. War Fireworks does build more money.

1000 billion USD,could have been used to build one hundred 800 meter towers and made USA richer.

Everyone now, know the story.

Learn everyday from it,make USA/Japan better any way possible.

There still a lot money to be made, in many ingenious ways.
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some14someJun. 18, 2009 - 08:12AM JST

So these banks have "good reputation" of paying back loan and therefore entitled for fresh loans and govt has allocated huge budget in advance...! What's there for common depositor?
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franz75Jun. 18, 2009 - 08:34AM JST

yeah but they got a money from the government again. The message is "don't worry! they'll give it back!". I believe the banks made quite a lot of money with the 12'000yen (or more) we each received that was not a loan but a gift.
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AltriaJun. 18, 2009 - 01:13PM JST

Did these "zombie" banks repay the loan in brains?
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usaexpatJun. 18, 2009 - 11:47PM JST

Lots of people claim Japan should have let the banks fail etc. etc. While there may have been a lost decade in Japan the government kept the bottom from really falling out. I would argue the US has just done the same thing. Look for a flat growth decade but I think we averted a second depression.