Investors ready for bumpy ride if Abe wins

by REUTERS

Opinions Dec. 15, 2012 - 07:00AM JST ( 6 )

The requested article has expired, and is no longer available. Any related articles, and user comments are shown below.

Author Infomation

REUTERS

Order by Time Order by Popularity

6 Comments

1

JeffLeeDec. 15, 2012 - 08:46AM JST

More than 90% of Japans debt... is held by domestic investors. By contrast, more than half of U.S. Treasuries are in the hands of foreign investors.

Shoddy journalism. Only about a third of US debt is held by foreigners. Why resort to such a misleading comparison, Reuters?
0

edojinDec. 15, 2012 - 03:45PM JST

If, as reported above, Abe's return to power is going to be a negative for Japan, why do the Japanese voters want him back in control? Are the voters really giving this election much thought?
0

BalefireDec. 15, 2012 - 07:06PM JST

@edojin, these are the same voters who thought it was a good idea to keep Ishihara Shintaro in the Diet for two dozen years, and as Tokyo governor for another dozen. And to keep the LDP in power for well over 50 years...with all that entailed.
0
Mike CritchleyDec. 15, 2012 - 07:22PM JST
Edojin: I think it boils down to two things.
1. Your average person in any country, Japan or otherwise, has a weak grasp if any on how finance works.
2. Abe is promising huge sums of make-work projects, and he wants to weaken the yen to spur exports.
In Naoki Average's mind, 1+2 = more jobs and money for us all NOW...and somebody else will figure out the problems with the general economy later (because I don't understand it well enough to be scared s&%tless about it as I should be). Next thing you know, Abe is sitting in the big chair.
-1

herefornowDec. 15, 2012 - 11:03PM JST

The combination of a weaker yen, rising stock prices and low bond yields could help lift Japan out of its fourth recession since 2000, analysts and economists say.

And if pigs had wings they could fly. The one sure fire thing that could help Japan get out of its doldrurms is a massive strutural overhaul that is at least twenty years overdue. But we all know that won't happen, since that would require real change and pain for the older generations who kept letting the LDP print money for years -- so the debt is now 237% of GDP. Easier to just keep kicking the can down the road and hope some combination of monetary and fiscal magic -- never attempted in similar circumsatnces -- will save the day. Unbelievable predicament for the world's third largest economy and what was once hailed as "The Japanese Miracle".
1

kurisupisuDec. 18, 2012 - 08:23AM JST

The US and the EU have been on the QE train for years now and the doomsday (whatever that is) is nowhere In site is it? A weaker yen helps Japan do what she is good at-export. What is wrong about that?