Worries Rise Over Japanese Banks

[Sapiens]

http://www.forbes.com/2009/04/10/sum...-megabank.html

Bermuda triangle of bad loans, stock losses and Barclays strike Sumitomo Mitsui.

Sumitomo Mitsui Financial Group was a hot potatoes Friday, as investors raced to unload shares of the smallest of Japan's big three megabanks after it said it would hold a massive share sale that would dilute its share value by nearly a third. Sell orders outnumbered buy orders to such an extent that the stock did not move for much of the morning session, with the stock eventually closing down 14%.

The retreat spread to Japan's other two megalenders, which are set to post results soon, as investors lost faith that the relatively conservative Japanese banking system will be a global stalwart amid the financial slump.

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Cannot extinguish debt, with more debt. The time will come when the piper must be paid. Japan is kaput.

[Sapiens]

Re: Worries Rise Over Japanese Banks

It’s Do or Die Time for No. 2 Economy: William Pesek
http://www.bloomberg.com/apps/news?p...d=aHXt9zS119sM

April 10 (Bloomberg) -- Japanese are getting more than their money’s worth from Taro Aso’s recent visit to London.

Trips by prime ministers to meetings like last week’s Group of 20 one are normally complete junkets. There’s rarely much to show for all those government bureaucrats flying business class, staying at five-star hotels and soaking up the local culture.

It seems Aso got a bit of religion from his chats in London with U.S. President Barack Obama, U.K. Prime Minister Gordon Brown and 17 other leaders. Aso’s new stimulus package, amounting to 15.4 trillion yen ($153 billion), is proof enough of that.

Two key points are worth noting here. One, Japan will now spend a total of 25 trillion yen, so it’s finally getting serious about taming the recession. Not serious enough, yet this is notable progress. Two, Asia’s spending efforts are putting an even greater onus on European nations reluctant to do more.

To economists such as Glenn Maguire of Societe Generale SA in Hong Kong, this is a “do-or-die” moment for the world’s second-biggest economy. Japan has been among the hardest-hit developed nations because of a heavy reliance on exports. Aso’s two previous packages failed to excite markets or consumers. This one may do just that.

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[Sapiens]

Re: Worries Rise Over Japanese Banks

Japan to Spend 15.4 Trillion Yen in Stimulus Package

http://www.bloomberg.com/apps/news?p...aXU&refer=home

April 10 (Bloomberg) -- Japan’s Prime Minister Taro Aso unveiled a record 15.4 trillion yen ($153 billion) stimulus package to help revive an economy headed toward the worst recession since World War II.

Including financial measures and guarantees, the plan will total 56.8 trillion yen, Aso said at a press conference in Tokyo today. His third package since taking office in September would take total spending to 25 trillion yen.

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[ax]

Re: Worries Rise Over Japanese Banks

One of these articles quotes Kirby Daley, forget which one. He correctly called a crash of the Dow below 7K pre-Lehman last summer when the market was celebrating the no-shorting rules and bank losses that were "only" 2 or 3 billion/quarter

[Sapiens]

Re: Worries Rise Over Japanese Banks

One of these articles quotes Kirby Daley, forget which one. He correctly called a crash of the Dow below 7K pre-Lehman last summer when the market was celebrating the no-shorting rules and bank losses that were "only" 2 or 3 billion/quarter

He called it below 10k on this video:
Airtime: Sun. Aug. 3 2008 | 8:11 PM ET