http://seekingalpha.com/article/225867-japan-intervenes-to-bail-out-america-s-consumers?source=email
Japan Intervenes to Bail Out America's Consumers
Odd comment in this piece
"In a way, what the Japanese government is doing for American consumers is very similar to what our government is doing for American homebuyers. Rather than let home prices fall, the US government subsidizes homebuyers so they can continue overpaying for houses they cannot actually afford."
I wasn't aware that American homebuyers cosidered themselves to be subsidised - many middle class Americans are working three jobs to support their families and mortgages and are one serious illness away from bankruptcy. As for the other comments within it; -
"Japan should allow the dollar to fall, which would force their manufacturers to adapt to a changing global market where Americans consume less, and those in emerging markets consume more. Instead, it is vainly trying to preserve the status quo and appease entrenched political factions."
And
"Just like here in the US, Japanese politicians take cover by falsely claiming that the intervention "saves jobs." However, the jobs that are saved come at the expense of more productive jobs that are either lost or not created. If Americans cannot afford to buy Japanese products, it makes no sense for the Japanese to continue selling them to us. Rather they should devote their time, effort, savings and resources to selling products to customers who can actually afford to pay."
Both seem to make some sense and the comparison between today and the dotcom bubble forcers of events is interesting.
ONQ.
Japan Intervenes to Bail Out America's Consumers
Odd comment in this piece
"In a way, what the Japanese government is doing for American consumers is very similar to what our government is doing for American homebuyers. Rather than let home prices fall, the US government subsidizes homebuyers so they can continue overpaying for houses they cannot actually afford."
I wasn't aware that American homebuyers cosidered themselves to be subsidised - many middle class Americans are working three jobs to support their families and mortgages and are one serious illness away from bankruptcy. As for the other comments within it; -
"Japan should allow the dollar to fall, which would force their manufacturers to adapt to a changing global market where Americans consume less, and those in emerging markets consume more. Instead, it is vainly trying to preserve the status quo and appease entrenched political factions."
And
"Just like here in the US, Japanese politicians take cover by falsely claiming that the intervention "saves jobs." However, the jobs that are saved come at the expense of more productive jobs that are either lost or not created. If Americans cannot afford to buy Japanese products, it makes no sense for the Japanese to continue selling them to us. Rather they should devote their time, effort, savings and resources to selling products to customers who can actually afford to pay."
Both seem to make some sense and the comparison between today and the dotcom bubble forcers of events is interesting.
ONQ.