Comments on: Let’s get the bad times over with quickly http://dofonline.co.uk/blogs/the-edge/education/lets-get-the-bad-times-over-with-quickly356/ Richard Northedge takes on corporate finance Tue, 22 May 2012 05:28:04 +0000 http://wordpress.org/?v=2.5.1 By: Monevator http://dofonline.co.uk/blogs/the-edge/education/lets-get-the-bad-times-over-with-quickly356/#comment-18 Monevator Thu, 24 Apr 2008 09:51:18 +0000 http://dofonline.co.uk/blogs/?p=98#comment-18 The other problem with the slow approach is it gives companies/politicians and even consumers more time to 'game' the system and play the new economic reality, rather than take the pain to return to a more productive economic footing. To return to your example of Japan, you see see this in the Japanese housewives who've effectively played the carry trade by saving cash off-shore for higher interest rates rather than investing in their own stock market, and the indeed the companies in that market who've had years now to create poison pills to ward off the takeovers Japan's sluggish economy really needs. The other problem with the slow approach is it gives companies/politicians and even consumers more time to ‘game’ the system and play the new economic reality, rather than take the pain to return to a more productive economic footing.

To return to your example of Japan, you see see this in the Japanese housewives who’ve effectively played the carry trade by saving cash off-shore for higher interest rates rather than investing in their own stock market, and the indeed the companies in that market who’ve had years now to create poison pills to ward off the takeovers Japan’s sluggish economy really needs.

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