Where will quick loans come from?
No doubt Japan could use some quick loans to turn around its economy. However, with the global recession hitting everyone hard, the country may have nowhere to turn.
Rapid recession
Japan’s economy is shrinking fast. In fact, it is shrinking at the fastest rate in 35 years. Japan’s GDP fell at an astounding annual rate of 12.7 percent in the fourth quarter of 2008. It’s the worst slide Japan’s economy has seen since the oil shock in 1974.
Employees of such giants as Toyota Motor Corp. and Sony Corp. might want to consider quick loans, too. The companies have already made big cuts, but they project they will have to lay off more workers.
No more ordering out
The hardest hit to Japan’s economy has been a hefty decrease in exporting. The United States and European countries are experiencing their own recessions. As countries have decreased spending on imports, Japan’s export industry has taken a major hit.
“There is no question that this is the worst economic crisis since the end of World War II,” said Economy Minister Kaoru Yosano. “The outcome clearly shows that Japan’s export-dependent economy has been severely hit.”
Japan’s bailout
Japan is forming legislation similar to the economic stimulus package in the United States, which President Barack Obama is expected to sign into law tomorrow.
Japan’s economy is collapsing at about three times the speed that the U.S. economy is shrinking. But Japan’s rescue package costs a tiny fraction of the U.S.’s. Officials are urging lawmakers to approve a $52.2 billion “extra budget” that includes sending cash to taxpayers.
Still falling
Japan’s GDP has fallen for three straight quarters. Economists believe the country will definitely experience another quarter of recession. Chief Cabinet Secretary Takeo Kawamura called the economic downturn a once-in-a-century calamity.
With nowhere to go for quick loans, Japan is probably headed for several more months of recession.
Dennis Blair was absolutely right – this recession is a threat to global security. Hopefully they’ll be able to ride this out, because without that steady supply of Asian exports, the American consumer market is going to collapse.