What’s dead now? Hmmm…
What’s so dead it’s beginning to stink? The only thing we can think of is Japanese stocks. Every time we mention them, dear readers write to ask if we’ve lost our mind. The Japanese are growing old. They are up against not just a retirement crisis; they face extinction. They are not just figuratively dead…but literally dead. The government is headed toward monster debts…with no way to finance them. Already, they borrow more than a dollar for every dollar of tax receipts. Besides, the Chinese work cheaper. And the Chinese have the same technology…and the same access to capital…and a much bigger market.
As if to prove that Japan is dead, Toyota seems to have fouled up its accelerator mechanism. According to press reports, some Toyota automobiles go faster and faster even when you tell them not to. Drivers do not like that kind of insubordination. Only vulture lawyers do. So Toyota has had to shut down its assembly lines in order to mitigate the damages. So investors took a whack at Toyota shares yesterday; they fell 9%.
Is it the end of the road for Toyota…and for Japan?
Probably not. But we wait to see what happens…just like everyone else.
for The Daily Reckoning Australia