Business

Japanese investing in US troubled economics

I was listening to a report on NPR earlier this week and I found that it had a very important concept behind it. Currently, the United States Treasury Secretary and Federal Reserve chairman are trying to push through Congress a $700 billion bailout plan that makes absolutely no financial sense. In fact, the people that get burned in the end are the taxpayers it seems.

And the NPR story spoke about Japan’s economic crisis approximately twenty years ago and how the government there had hunkered down and invested in what the people were looking to get into, which was savings mode. And within years of just paying attention and putting it away, the Japanese now have a lot more to work with than before. It was a totally worthwhile listen. On top of that, you can see that with the recent declaration of bankruption by Lehman Brothers (LBC: 0.00 N/A), the liquidation of their assets allowed Nomura Holdings (NMR: 8.30 0.00%) to snap up the Asian arm of Lehman for cheap. Which seems definitely like a return of the 90s again doesn’t it. Remember when the Japanese were buying up buildings everywhere in Manhattan? It seems that they’re cash rich again.

And this time around? I don’t believe that they’re going to make the same mistake twice. Should give those politicians in Congress something to think about when someone’s already paved the way of bad economic plays. Learn from other countries’ mistakes and don’t reinvent the wheel. Because in the end, you just end up with irate taxpayers and corporations that never learn that you have to pay for bad mistakes regardless of whom you know.

Photo Credit: (KRob2005)

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