1. Most Discussed
  2. Gainers & Losers

Japan's recovery plan 'not good enough'

  1. Acronym

    730 Posts.

    Japan's recovery plan 'not good enough'

    Japan has unveiled plans to restore the world's second-largest economy to health but financial analysts already say the measures do not go far enough.

    It is estimated Japan's banks are carrying as much as $1 trillion in loans that will never be repaid.

    That is one of the reasons why the world's second-largest economy is barely able to lift itself out of recession.

    Late last night, the Government finally revealed its plans for tackling the problem.

    At the centre of the package are changes in accounting practices that would force banks to calculate their capital more realistically.

    But there has been a muted response to the idea because the Government has caved in to pressure from the financial sector and not specified when the new rules will be implemented.

    While most countries around the world have to deal with inflation, Japan has been suffering from the opposite - deflation.

    Prices have been falling for several years now, sending companies broke at an alarming rate.

    A date for the introduction of the rules has not been set.

    In an attempt to soften the impact of the measures, the Prime Minister announced more than $10 billion in tax cuts.


Before making any financial decisions based on what you read, always consult an advisor or expert.

The HotCopper website is operated by Report Card Pty Ltd. Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.

From time to time comments aimed at manipulating other investors may appear on these forums. Posters may post overly optimistic or pessimistic comments on particular stocks, in an attempt to influence other investors. It is not possible for management to moderate all posts so some misleading and inaccurate posts may still appear on these forums. If you do have serious concerns with a post or posts you should report a Terms of Use Violation (TOU) on the link above. Unless specifically stated persons posting on this site are NOT investment advisors and do NOT hold the necessary licence, or have any formal training, to give investment advice.


Thank you for visiting HotCopper

We have detected that you are running ad blocking software.

HotCopper relies on revenue generated from advertisers. Kindly disable your ad blocking software to return to the HotCopper website.

I understand, I have disabled my ad blocker. Let me in!

Need help? Click here for support.