politics

Aso says U.S. bank bailout 'insufficient' and causing renewed stock market plunge

32 Comments

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

© Copyright 2008/9 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

©2021 GPlusMedia Inc.

32 Comments
Login to comment

Sorry to break the news but no government can fix the problems. We are going through a major market correction (a very painful one) and I am sad to say there are only short term PR chances in it for politicians. This problem can only be fixed by itself but we are used to the idea pf governments fix things for us. Well lets just take a look at the lost pension record problem. A job the government was expected to do for us. It was as simple as keeping records with backups in place. If they cannot do such a simple task, how would they fix investor and consumer confidence?

0 ( +0 / -0 )

teaabe: Good post. I'm just bedazzled by the monstrosities they build in the US. Particularly in Las Vegas which is doubly absurd given the area already has and is due for some horrendous water problems. But no; jacuzzis and 'butler pantries' sic rule. Some of these places would make excellent ski lodges anywhere else and to be fair, I think the same stupid architecture is in other countries as well.

0 ( +0 / -0 )

just because the us is hurting doesn't mean the others have to. does it make sense for the rest of the earth to decline simply because the us is? people in the us live in grossly large homes largely detached from each other and the greater world they live in. should this planet place them at the center of it all, a minority of 300mil. out of six billion??

0 ( +0 / -0 )

shuuu: A recession it is, granted. But Japan kept its GDP up. Think the US can do it? Doubt it... The US has cut production drastically and with the encouragement of George Bush increased consumption, all financed on credit spending and a basically unregualted stock market. What sure fire scenario for a crash.

0 ( +0 / -0 )

I always enjoy reading comments from foreign leaders trying to tell the U.S. how to do something they've failed miserably at themselves.

By the way, Japan, how's that decade long recession treating you?

0 ( +0 / -0 )

I saw in the US presidential debate last night that each candidate stated how the US continues to keep needing China for financial bailouts, Obama mentioned the figure of $700 billion but it is more like $1 trillion that China loaned to the US (in all financial instruments, not just T-bills). As a note, it would totally suck if China decided to pull out all of their investments in the US economy and place them in other parts of the world where people do live within their means, such as China itself. After all, Cleo wrote that China's people still eat rubbish and live in hell-holes.

What is the actual dollar figure for the total of loans/investments that Japan has tied up in the US? I assume it is more than $1 trillion.

0 ( +0 / -0 )

Let's just blame it on the Old USA. Like if all those other counrties didn't make bad decisions or knew this was coming. At the moment the US is trying to take care of itself hoping to help the othe countries in the process and I don't think anyone can blame them. With time we will see if it pays off or not.

0 ( +0 / -0 )

I agree, they are suppose to be money experts but they obviously aren't.

Well, gogo. Being the money experts "they" are, I'm sure they've figured out that there's no way to stop the ups and downs in the market. Taro Aso has all the right to complain since this is the world's problem now, but I hope he's planning on being more active with all the money Japan is sitting on if he's going to speak out like this.

0 ( +0 / -0 )

I think I'll pre-empt someone and give Mr. Aso the Darwin award for the best gaffe of this month!!

0 ( +0 / -0 )

It doesn't take a genius to workout that throwing money at the problem just makes it worse...the US should have taken note of how Japan does this and still fails to fix the problem!

0 ( +0 / -0 )

I think America has much to learn from Japan's last ten years experience

Except human-cost that Japan has paid and still paying.

0 ( +0 / -0 )

The greed was not only of the financial companies' CEOs: the average American spent more than what he earned in the last years. Just ridiculous.

0 ( +0 / -0 )

Har!!!!!!!!!!! It is to secure the banking system, not the stock market!!!He is crying because North Korea is off the terror list and this is his way of showing he is unhappy with Pappy!!!!!!!!!!!

0 ( +0 / -0 )

these restructurings take time. I believe it is going fairly well. Expect quite a few more banks to fail and many of those will be bought out by others. The strong will survive and that is business.

Interest rates in Japan need to rise and people need better access/availability to loans. People should not need to go into foreign investments for a fair rate of return.

0 ( +0 / -0 )

nutsagain, yes the last ten years of recession in Japan. We have a lot to learn. Recently read that income in Japan hasn't risen in 15 years. Interesting. I hope we learn what not to do.

0 ( +0 / -0 )

He's halfway right. Japan had the same problem when the bubble burst in the late 90s. So what did they do? Slashed the interest rates to almost zero and made two huge cash injections into the economy in '97 and '98. Now what's really interesting is that through the entire period until now, they've kept their GDP from falling.

America on the other hand has cut its production base, yet unwisely increased spending and consumption then funded all this through credit. A sure fire recipe for a crash if ever there was.

I think America has much to learn from Japan's last ten years experience.

0 ( +0 / -0 )

In a investment bubble along with the greed driving the asset price inflation there must also be some form of liquidity..real money or debt.Over the years since Japans own asset bubble implosion it has been lending vast sums of money at interest rates near or actually at 0%..this lead to the creation of what has become known as the "Japan Carr trade" where this money at low rates, was taken around the world and invested where it gained higher returns..one notable destination for this was Iceland although it has been used in most markets. So in fact when the final analysis is done it may in fact be Japan whose policies have had the most influence on the current greed driven debacle.

0 ( +0 / -0 )

Here is another option Japan should consider: Accept the unacceptable and bear the unbearable as all of those foreign reserves ($950 BILLION in US T-Bills) disappear when the US defaults on repayment. Aso can then claim Japan bailed out the US and saved global capitalism!

Actually, it's approximately $590 billion in U.S. Treasury Securities. The total sum of U.S. Treasury security owned by foreign country is over $2.6 trillion.

0 ( +0 / -0 )

Obama climbs, the Dow retreats.

0 ( +0 / -0 )

Here is another option Japan should consider: Accept the unacceptable and bear the unbearable as all of those foreign reserves ($950 BILLION in US T-Bills) disappear when the US defaults on repayment. Aso can then claim Japan bailed out the US and saved global capitalism!

0 ( +0 / -0 )

well done Aso, you got the same result as screaming "we are all gonna die" on a descending airplane.

I think the US caused the problem, its 'their' problem to live with now.

really, so the innocent people of world countries who were salivating and licking their lips at all the cash they made off the US over the past few years are innocent?

The US did not cause this problem, greed caused it.

0 ( +0 / -0 )

What an astute observation by Aso.At least the US,Europe and Oceania along with China and India could experience a boom. Japan has been limping along for nigh on twenty years,boring the hell out of me about when there was a bubble. That was so 80s ago.Time to move on from yesteryear. But the dunce caps masquerading as PMs and politicians don't care.Politics in Japan is just a family business to be handed down.

0 ( +0 / -0 )

I think the US caused the problem, its 'their' problem to live with now.

Well, judging by how badly the world markets are doing, we know that simply isn't true now, is it?

0 ( +0 / -0 )

I agree, they are suppose to be money experts but they obviously aren't.

0 ( +0 / -0 )

I think the US caused the problem, its 'their' problem to live with now.

0 ( +0 / -0 )

but you understand MeanRingo? it only means that the tax payer has to cough it up.

0 ( +0 / -0 )

It was too much in the first place.. They should of used the money in a different way and set up regulations to stop the problems, but like a good goverment we throw money at the problem hoping it will go away..

0 ( +0 / -0 )

dummy

0 ( +0 / -0 )

it's too big for Aso to understand either.

0 ( +0 / -0 )

this is too big and too much money for the likes of posters on this interweb to understand.

0 ( +0 / -0 )

It is true, but from diplomacy point of view it does not seem appropriate for the Prime Minister of Japan to comment like that. Perhaps Aso is humiliated with U.S. President Bush's announcement of delisting of NK from terror list right in front of G-7 members !

0 ( +0 / -0 )

If it is insufficient Taro, perhaps you might cough up some more money yourself. Surprise us, instead of moaning about the status quo, assume a leadership role rather than just complain.

0 ( +0 / -0 )

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