Will the Japanese disaster trigger global economic depression?

[Matt Collins]

Will the disaster in Japan trigger a global economic depression?


Japan was teetering on a bad economic situation themselves. Their markets are trashed. Could this have a ripple effect?

 

[FrankRep]

BOJ is ready.


Bank of Japan to pump cash into banks
http://money.cnn.com/2011/03/13/news/international/bank_of_japan_earthquake/

Bank of Japan braced to stabilize markets
http://www.ft.com/cms/s/0/b08ed982-4d85-11e0-85e4-00144feab49a.html?ftcamp=rss

Bank of Japan to 'pump massive funds' into market
http://www.google.com/hostednews/af...ocId=CNG.c24b36c3fa9ebaf6a82bf3e95df9eca3.951

Bank of Japan to inject massive funds into market on Monday
http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/1116258/1/.html

Japan markets to open Monday, on guard for manipulation
http://www.reuters.com/article/2011/03/13/us-markets-japan-open-idUSTRE72C21M20110313

 

[100DollarBarrelofOil]

Interesting post about eurozone on zero hedge about this friday, related specifically to the fact that japan was buying eurozone bailout bonds two years ago. Wonder what the sell off is going to be like in eurozone/us bonds by the Japanese in the coming weeks?

 

[cubical]

The government may have to start unloading some US treasuries. it was coming sooner or later anyways.

 

[AZKing]

The government may have to start unloading some US treasuries. it was coming sooner or later anyways.

That's what I've been thinking. No idea what their financial situation is.

 

[Maximus]

It sure can't help the worldwide economy, although I could potentially see US factories picking up orders if Japanese factories are knocked out.

 

[Fox McCloud]

I doubt it'll cause a worldwide depression, but it could certainly exacerbate the permacession Japan has been in the past 20+ years, for sure.

 

[100DollarBarrelofOil]

Wow, I hand't read that about the BoJ. I guess it's that surprising they're going to dump cash into the banks, but still... I mean, isn't this the same country that has a debt to GDP ratio of 200 percent? Where are they going to get the money?

 

[TheNcredibleEgg]

A global depression is looming regardless of Japan. It might hasten it, but it will not be the cause.

But I have no doubt that some will try to blame Japan if it does happen as opposed to the real blame - Keynesian economics.

 

[Johnnybags]

No,no and no. Granny might not get interest and eat dog food but the money printers will simply print until all paper currency is rubbish. BOJ will simply print, Bernanke will buy anything they wish to sell and your work and savings will continually eroded.

 

[YumYum]

Actually, a crises of this magnitude is good for the world economy.

 

[ronaldo23]

Actually, a crises of this magnitude is good for the world economy.

-Paul Krugman

 

[The Dark Knight]

maybe not world wide but sure is not a good thing for japan which has already been having trouble with its economy.

 

[FrankRep]

NIKKEI down 4% and starting to recover.
http://e.nikkei.com/e/fr/marketlive.aspx

 

[SanjaySingh]

Japan will face orderly stagnation or very very gradual decline, but is not a candidate for causing a World Wide event.

 

[cindy25]

Japan is finished as a first world country; the factories destroyed will never be rebuilt in Japan; Japan will face 3rd world style power shortages for years/decades.

 

[FrankRep]

Japan is finished as a first world country; the factories destroyed will never be rebuilt in Japan; Japan will face 3rd world style power shortages for years/decades.

You wish. Japan will need to rebuilt some, but they will recover.

 

[Matt Collins]