Japanese banks keep lending at record pace in July as pandemic pain persists

By Leika Kihara

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No surprise but good to know some information as to why and where.

1 ( +1 / -0 )

So taking advantage of small and medium-sized firms hard hit by the pandemic is what’s making banks’ huge profits.

5 ( +5 / -0 )

reminds me of an advertising campaign for a bank in Oz decades ago, a famous cricketer (I think) speaking the punchline: "we're good sports with money".

what heroes these banks are, helping small firms under pressure deepen their debt.

the world will never be the same after this pandemonic (sic). I see the UK is hitting the wall, economically-speaking. people under house-arrest for months on end, businesses dying in their thousands. recession? who'd've guessed?????

5 ( +6 / -1 )

P.S. not due to 'the virus'.... due to the response to the virus.

3 ( +4 / -1 )

P.S. not due to 'the virus'.... due to the response to the virus.

What response do you think could have been better?

0 ( +2 / -2 )

Because they know the government will bail them out, just look at history

2 ( +2 / -0 )

They should bankrupt. More we subsidy zombie companies, more problem we will have in the future. Bankruptcy is a good thing it clears the market from inefficient companies. 

First problem is inflation. This stimulus will lead to the money losing it's value or in another words inflation. Savings keepers will lose everything they worked for all their life.  

Second, work and pay inequality. If you keep subsidy that small companies their staff getting paid for doing nothing or pretending that they are busy (Japanese Airlines, Hotels etc.). Now the person that stends there make money as person who sweats and actually works in let's say factory or as an English teacher make money too, but trust me people prefer not to sweat and take money. 

I know it's virus situation but this can't be saved. It's the best moment to change the old system.

4 ( +4 / -0 )

I still believe one of the best analyses of the situation is by Andrew Yang and others:With the impact of the pandemic we are seeing in time-compressed form what would have happened to our economy from the effects of automation over 10 years. Yet the responses are slow to change-inundate financial institutions with cash who provide firms with near zero interest loans no matter their response to the crisis or future strategies that will benefit society as a whole.

The endgame is: Once financial instituions and businesses are stabilized and households and consumers still have no disposable cash to patronize these businesses, there is this top-heavy economy with a small market to purchase your products and services. Wouldn't a bottoms-up approach be more socially responsible?I wish Japan would take the lead in this approach like some other social democracies.

2 ( +2 / -0 )

drluciferToday  10:20 am JST

P.S. not due to 'the virus'.... due to the response to the virus.

What response do you think could have been better?

perhaps a response that was proportionate to the problem.... not the response that has wrecked lives and economies because of a virus that is no more deadly than other viruses which weren't responded to in a similar manner, including annual influenza. I think the biggest problem related to C19 is that it has become a politico-media circus, with all and sundry using it for their own ends: to justify their egotistical gambits and to emphasize their own importance, as a scapegoat for whatever was going wrong anyway, as a badge of honour for those who profess to care about the populace, and to push political agendas of one sort and another. I hope that answers your question as to my opinion.

1 ( +1 / -0 )

Obviously this will need to be paid for in the long term. therefore, expect consumption tax to hit 12% and you won't get your pension until your 70. Abe san will clearly state that it is as a result of Covid but we all know that this was the plan anyway. Japan isn't producing enough new people and She needs to squeeze more out of her citizens!

3 ( +3 / -0 )

perhaps a response that was proportionate to the problem...

And what is that response?

You have beat about the bush without answering my question.

1 ( +1 / -0 )

Japan will never go bankrupt as long as it kowtows to the American overlords. The whole rationale of "Japan can go infinite QE" is coming from the fact that almost all Japanese assets are being held hostage in the USA under the supervision of the US Treasury. Japan can only go bankrupt if it has the permission from the USA itself.

If Japan goes bankrupt, it would shake the foundation of USD global regime for a moment. The days that Japan go bankrupt are the days when the country's sovereignty is reduced to just another Hawaii for the USA. As we speak, many major Japanese companies are being taken over by foreigners in the mist of the pandemic. Many of these foreigners are Americans who prefer Reaganomics or neoliberalism.

I don't worry if Japan itself will go bankrupt because the country will be acquired and bailed out by the Americans. I rather worried about the fate of Japan if it becomes Americanized. Just look at how fallen the UK became after it felt as nothing more than an American lapdog. UK's culture is reduced to a level as low as an American tourist. This is the fate awaits Japan under Abe and LDP cronies.

5 ( +5 / -0 )

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