business

BOJ not considering emergency fund injection over Greece yet

11 Comments

The requested article has expired, and is no longer available. Any related articles, and user comments are shown below.

© (c) Copyright Thomson Reuters 2015.

©2022 GPlusMedia Inc.

11 Comments
Login to comment

I think the BOJ should save those emergency funds for our own country - Japan. We're going to need if Abe doesn't implement the fiscal reforms and cut back on spending like he promised.

3 ( +4 / -1 )

It seems like a big waste of money to bail our Greece. The only solution is to let Greece take its medicine and declare bankruptcy. Why prolong the inevitable?

2 ( +4 / -2 )

Folks, this is not a suggestion of the BOJ lending money to the Greeks. It's about injecting money into "Tokyo markets".

And it's just talk from the "weekend market event playbook" anyway:

"[the BOJ] likely sees little need to act immediately with Tokyo markets awash with funds due to its aggressive monetary easing".

Japan is still a net creditor and the world's largest creditor.

How much does that count for though? I am resident in Japan, have foreign assets and no foreign debts. But I have no intention of selling off a cent of my foreign assets to help bail out this government for it's profligate spending, should it ever require it. I'm not sure that it is so different for other residents of Japan.

2 ( +2 / -0 )

There has been no official comment from any BOJ spokesman....

An official on condition of anonymity

Basically it word around the water cooler.....

0 ( +0 / -0 )

It WAS a mistake to allow Greece into the Euro when it did not meet the strict criteria required to join the Euro --yet let Greece join THEY did--, but that pales to what will happen if they let Greece go... 'Ah, so it isn't a union, it's a loose monetary exchange mechanism.. OK, let's make a run on... Italy! Then Spain, Portugal...' and so on. This is what happens when you put politics before economics.

0 ( +1 / -1 )

Injecting your own debts? Lets see...

0 ( +0 / -0 )

one thing before i explain greece's debt. I hope japan does smth on that amount of money borrowed bc they will end up worse than greece since greece has friendly neighbours. NOW, what greece did really bad during the euro was giving pensioners as much money as greeks felt like it. I used to live in greece and my dad would tell how the people would know one another and if they didnt have money to give to pensioners they would just keep taking from euro banks and put themselves in debt. BC they wanted to satisfy their people at the moment and they were not looking at the long-term. The euro saved greece before. keeping them in high-interest spot of tourism bc euro spured growth in comercialization. then during 2010 there was a lot of corruption scandal with greek politician taking the money of taxpayers and living to another country. in the end greece was left with a huge debt where they couldnt pay bc the money were not spend properly. And businesses they already left for albania bc they saw what a high amount of taxes they have to pay and there u go now. no more greece

0 ( +0 / -0 )

No, the BOJ doesn't have to do anything. The market can and should take care of itself, or at least it could at one time. But now that government debt and servicing costs are larger than their respective GDP's, fluctuations in the economy can hamper the government's ability to borrow and spend (squander). So now, in order to keep government debts manageable, the central banks are using their influence to more or less regulate free markets. Of course, the results are predictable, the markets no longer depend on or care about the performance of companies and business, they have become dependent on the central banks' continuing to flood the market with money, and to keep interest rates low. The eventual result of this action will be worse than if the central banks did nothing at all, and let the market regulate itself, as a free market should.

The only result of Japan loaning money to Greece would be delaying the inevitable by a few weeks or months, and make the fall that much harder. Greece of course will never repay any money they receive from Japan, just as they will never repay the billions they have fleeced Europe for.

If turmoil in Greece causes turmoil in Japan's markets, Japan has only itself to blame by encouraging the building of a paper economy which is now powered mainly by QE than by private-sector economic activity.

-1 ( +1 / -2 )

The ROI for Japanese companies in bailing out Greece is just not there, so the BOJ will sit this one out. Nothing to capitalize on.

-1 ( +0 / -1 )

Actually Kuroda is hoping the the yen will temporarily strengthen to around 130 or so to the euro so that Taisei, Takenaka, Hitachi, Fujitsu, Mitsubishi Heavy and others can lock in FOREX reserves through 2020 at favorable rates to complete construction of both the stadium and the maglev trains with indecent profits from inflated spot exchange proposals...

-1 ( +1 / -2 )

Japan is still a net creditor and the world's largest creditor. I personally believe that Japan is either purposely sterilizing its economic growth, or came out of recession and just didn't tell anyone.

-3 ( +1 / -4 )

Login to leave a comment

Facebook users

Use your Facebook account to login or register with JapanToday. By doing so, you will also receive an email inviting you to receive our news alerts.

Facebook Connect

Login with your JapanToday account

User registration

Articles, Offers & Useful Resources

A mix of what's trending on our other sites