Anyone who's taken a few economics classes has at least read a little about the Japanese economy and the pain that its felt over the past couple of decades. What makes this interesting in light of today's economic woes is that Japan may be in an excellent position to take advantage of the opportunities in troubled Western economies while its own market begins to show signs of life.
Home of the rising sun may be home to many more investors than there are in domestic western markets. With relatively little growth potential at home, Japanese banks are looking elsewhere to place their bets. The Japanese, long known for their high savings rates, make their big banking institutions flush with cash and with the domestic economy now appearing to require less of their attention, these banks are preparing for a return to their buying spree of the 1980s with a $1.2 billion investment in Merrill earlier this year and another $1 billion investment in Barclays.
According to the author of this article, the housing troubles and credit crunch in the U.S pales in comparison to what the Japanese have had to deal with over the last 20-years. Consequently, there's some support to the notion that they are now better prepared than anyone to spot the opportunities in such down-markets and now also have the cash and investing flexibility to reap those opportunities as others wait for a rebound that may still be years away.
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