The great Japan gold rush begins (was The New N at zi$m)

[Charles Jannuzi]

Asia WSJ
>There is no sustained solution to Japan's >economic problems without bank
>reform, no effective bank reform without >recapitalization, and no viable
>recapitalization without foreign capital. >The sooner Japanese leaders and
>the Japanese public come to accept this >logical conclusion, the better off
>Japan and the rest of the world economy >will be.

Thanks Hakki for that Asia WSJ article. It's great to see how the enemy
thinks.

Foreign capital and expertise is needed to fix the banking system of a
creditor nation. Gotta love it.

The whole system could have been fixed a long time ago had two things
happened:
1. the yen cheapened against the dollar so deflation didn't happen (from
about 1995 on)
2. the government had just used postal savings and postal insurance to
nationalize the accounts of failed firms, selling off the good loans and
other assets to legitimate companies, Japanese or foreign.

Instead the big fix (double meaning intended ) is: make the Japanese tax
payers pay for all the bad loans, sell off/give away the good loans to the
predators so they can make huge profits off them, and divide up the Japanese
economy for the players big enough to play.

I think this is going to wreck Japan's and Korea's economy. For one thing,
Japanese companies have always raised capital for  venture through their
banking system, not through IPOs or junk bonds. Letting interests like
Carlyle (what the fuck are they anyway, a merchant bank? an investment fund?
who oversees them?) in to control the financial system is going to screw
things up horribly. Mark my words.

Charles Jannuzi