Very thought-provoking article. I've been interested in the nepotistic effects of the Keiretsu for quite a long time, but hadn't yet begun considering the purely economic aspects. Thanks for the impetus.
I think the BoJ effectively is conducting a giant debt for equity swap, essentially partly nationalising Japanese Industry in order to obtain an income stream to offset the bad debt (read: JGBs) on its balance sheet.
That is the Buffet trade (sell JGBs, buy large cap Japanese equities) after all.
Fascinating.
Very thought-provoking article. I've been interested in the nepotistic effects of the Keiretsu for quite a long time, but hadn't yet begun considering the purely economic aspects. Thanks for the impetus.
I think the BoJ effectively is conducting a giant debt for equity swap, essentially partly nationalising Japanese Industry in order to obtain an income stream to offset the bad debt (read: JGBs) on its balance sheet.
That is the Buffet trade (sell JGBs, buy large cap Japanese equities) after all.