Japan’s Premier Aso says U.S. must expand bailout plan

October 15, 2008 by · Leave a Comment
Filed under: Global News 

Well I hope we listen to the Japanese.  We are not having a liquidity problem.  We are having a serious debt and confidence problem that is creating the symptoms of a credit crisis.  What the give away sign is that the credit problem is actually so acute and it actually slowing business.  When you are dependent on credit, that lack of credit is much more noticeable and effective on your lifestyle.  That changes a person perspective and that changes their purchasing behavior.   In closing, when you bail everyone out then you bail no one out.  

News Piece:

 

Japan’s Prime Minister Taro Aso said the U.S. government must accelerate steps to bail out financial institutions to help arrest plunging stock values.

“People think the $250 billion plan is insufficient and that’s why markets are falling,” Aso, 68, told lawmakers today in a reference to the U.S. initiative to buy stakes in thousands of financial firms. “They need to make a quick decision to inject capital.”     

 Aso, who took office last month, is seeking to convince voters his government has limited responsibility for a growing financial crisis that triggered record declines for Japanese stocks last week. His Liberal Democratic Party, in power for but 10 months since 1955, faces opposition demands to call an election as early as next month.

“Aso wants to blame the U.S. and show he’s doing his best to help the economy,” said Kazutaka Kirishima, an economics professor at Josai University, northwest of Tokyo. “All he cares about is the political situation.”

Japan’s government said Oct. 14 it would halt sales of almost 2 trillion yen ($19.8 billion) of shares it bought since 2002 and ease restrictions on company buybacks to stabilize financial markets. The Bank of Japan, already with the lowest borrowing costs for a major economy, didn’t participate in coordinated global interest-rate cuts last week. The central bank said it will offer banks as many dollars as they want in a bid to lower borrowing costs in money markets and free up credit.

Controversial Remarks

Aso, who replaced Yasuo Fukuda Sept. 24, has a history of making controversial remarks, including a suggestion in 2006 that Japan should debate whether to develop nuclear weapons. That same year, he provoked a protest from South Korea by saying he wanted the emperor to visit Yasukuni, a shrine that counts war criminals among the honored war dead.

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