Japan: Slip Sliding Away

From marctomarket.com

There is a stark contrast between the deterioration of the political and economic environment in Japan and the relative strength of the yen. The mystery is resolved by recognizing that the drivers of the yen's exchange rate has little to do with the macro-fundamentals in Japan and more to do with the general investment climate and interest rate differentials. Make no mistake about it, although Japan did not experience the US real estate implosion or Europe's sovereign and banking crisis, its economic crisis is just as profound. And, as appears to be the case in America and Europe, Japan's political institutions or ... (full story)