Ripples from a Japanese Bank Collapse 2003 (relevant today)

AI Times ^ | 12/05/2003 | Hussain Khan

[willyd]

TOKYO - The Japanese government's November 30 decision to nationalize the insolvent Ashikaga banking group has surprised investors who had expected a Resona-style bailout - in which shareholders weren't forced to take a haircut for the mess. The move means that Ashikaga shareholders' capital will be wiped out, leaving them with nothing, and the government will take 100 percent of the equity in the regional lender.

Since May 17 when the government decided, in bailing out Japan's fifth largest bank, not to compel shareholders to assume responsibility for the Resona debacle, some foreign hedge funds had picked up regional Japanese bank shares in expectation of similar government relief measures. The lack of relief measures in this case leaves investors in a quandary about future government moves in event of further collapses.

[willyd]

Our situation happened to Japan not too long ago...does anyone remember when they were buying all of our golf courses and real estate?

here is a link to the bio of their prime minister at the time. He made a great speech on the eve of their destruction that had more to do with all Japanese picking up their pace and doing without as a way to correct the economy. I think this is worth a read...any links to the actual speech would be appreciated.

Juni Koizumi

[Tempest]

yeah that why you don’t put all your eggs in one basket.

[Nathan Zachary]

I remember when Japan was buying up all the gold they could get their hands on. I think it was more a currency issue than a bank issue however.

That is what began the “gold rush”. People scoffed over advise to buy gold (it sold for around $234/oz then) It turned out to be a very good long term worry free investment.