Japan appears poised for hard times. Exports have plummeted and job losses and pay cuts are a haunting specter. Domestic demand, slammed late last year by a tax hike, remains timid as a government discount campaign intended to spur spending has been met with limited consumer interest. To cover a shortfall in tax revenues, the debt-laden government recently issued more bonds. Fortunately, Japanese households are renown savers. Despite a gray population drawing on funds for retirement, the household savings rate has strengthened in recent years. This trend could likely compound as consumers tighten purse strings ... (full story)