Japan's 'ticking fiscal time bomb


With the world’s eyes on Europe in general, and Greece in particular, analysts are bringing up another country…Japan to worry about. Marketwatch has an excellent article on it. Opening line of the article:

“Investors appear to be trading around quarterly earnings results, but they seem reluctant to buy and hold Japan, given the belief in a ticking fiscal time bomb,” analysts at Macquarie said in a recent research note.

The interlinking of Japan’s economy with Europe is explained:

The European Union accounts for about 13% of Japan’s exports, and around 21% of Japanese companies’ overseas subsidiaries’ sales come from Europe, Macquarie analysts said.

That said, Japan’s problems are much worse and deeper than the about statistic. Their biggest problem is demographics. With an extremely low birthrate for decades, Japan Inc. is about to implode even further.

The article is worth clicking on just to see the health of the stock market. Not good. Here is the article in its entirety:

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