Just Another Small Asian Country

Darrell Whitten who runs The Japan Investor has good post on his Tokyo Takes blog criticizing Japan for too little and too late action around the crisis in the financial sector of Japan.

The Chinese stock market is now bigger in terms of market value than the Japanese market if Chinese companies listed in Hong Kong are taken into account, underlining the dramatic surge in the country’s financial markets over the last several years. As of August, the Japanese market capitalisation was $4,700 bn, while the combined value of the Chinese market has surged to $4,720 bn.

What is needed is
greater transparency and freedom from the Financial Services Agency and Japanese regulators, who are stifling the market with murky powers and enormous discretion in setting rules and enforcing them in jealously guarding its power, byzantine paperwork and proceedures, a change in attitude by both politicians and the private sector to dispel the popular perception that finance is a dirty money game, and high corporate and personal income taxes.

People would rather live in Tokyo because it is one of the safest and cleanest, but long-term hands such as TJI have become almost completely given up on Japanese politicians, regulators and even captains of industry because of their persistent inbred, and inward looking world view that is seriously hampering progress.

That Japan has an inward-looking world view is both cultural and geographic (more the former than the latter.)

Tokyo Takes: Japan’s Financial Center Hopes: Just Another Small Asian Country