Japanese trading houses to cut investments, step up asset sales

But analysts cautioned the practice of working to a short-term group investment horizon could lead the firms to sell off some businesses at the wrong time in the investment cycle.

Exactly. Sounds like they bought at the top of the markets, and are selling at the bottom. Never a good strategy.

Would be interesting to know what percent of the writedowns are on assets in Australia. Lots of money has been lost there by lots of companies due to over-investment and too rosy price projections.

Good, focus on domestic market.

Guy, good question. A lot of the coal and metal mines are being written off in Australia. I would expect that with the low prices for many commodities, that Oz mines are getting squeezed as well. Like the American oil wells, Oz miners production costs are at or under commodity prices