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Bank executive says mergers won't fix woes brought by BOJ policy

By Leika Kihara

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I don’t really understand how praise can be heaped on bankers as politicians,failed monetary policies,and being trained at Oxford in economics somehow makes the banker somehow able.

Japan has become poorer and less competitive for years now-this is a sign of failure....

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He is confident and he’s a good politician,” Kubota said of the BOJ governor. “Even if he thinks something is dubious, he would never say so, so long as there is a need for the policy.”

So even if he disagrees he won't say so as having a policy any policy is better than dealing with reality? Now that's inspired leadership!

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I don't know whether there's a disconnect between report and editing or not, but the story makes very little sense.

Stop the policy - but no solution proposed, who would publicly say that?

I'm not in finance, but I'd like to think my hunches about Japan has been mostly accurate when things unfold. Deflation, or under inflation is prevalent everywhere (Australia and NZ has had real wage deflation for years despite good trade terms), it's because China has been exporting spare capacity to advanced economies around the world, and it won't end even if all of China's excess capacity is taken up, this is because Chinese money is unlocking addional capacity in developing economies and B&R is enabling it all.

I am guessing Kubota san is unhappy because the investment (read gambling) division of his bank has bought assets like bonds and there isn't enough volatility for his traders to realise profits. His comment about retail lending margins is a bit disingenuous, you borrow at wholesale rate and lend at retail, of course profits is generated, particularly when you consider the fractional reserve system (ie 2% lending margin is like 20%-30% profit margin because banks are holding less than 10% reserve of what they are lending out).

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