JAPAN PREMIER ASO SAYS U.S. MUST EXPAND BAILOUT PLAN
Takashi Hirokawa and Sachiko Sakamaki
Bloomberg, October 16, 2008
Japan's Prime Minister Taro Aso said the U.S. government must accelerate steps to bail out financial institutions to help arrest plunging stock values.
“People think the $250 billion plan is insufficient and that's why markets are falling,” Aso, 68, told lawmakers today in a reference to the U.S. initiative to buy stakes in thousands of financial firms. “They need to make a quick decision to inject capital.”
Aso, who took office last month, is seeking to convince voters his government has limited responsibility for a growing financial crisis that triggered record declines for Japanese stocks last week. His Liberal Democratic Party, in power for but 10 months since 1955, faces opposition demands to call an election as early as next month.
“Aso wants to blame the U.S. and show he's doing his best to help the economy,” said Kazutaka Kirishima, an economics professor at Josai University, northwest of Tokyo. “All he cares about is the political situation.”
Japan's government said Oct. 14 it would halt sales of almost 2 trillion yen ($19.8 billion) of shares it bought since 2002 and ease restrictions on company buybacks to stabilize financial markets. The Bank of Japan, already with the lowest borrowing costs for a major economy, didn't participate in coordinated global interest-rate cuts last week. The central bank said it will offer banks as many dollars as they want in a bid to lower borrowing costs in money markets and free up credit.
Takashi Hirokawa and Sachiko Sakamaki
Bloomberg, October 16, 2008
Japan's Prime Minister Taro Aso said the U.S. government must accelerate steps to bail out financial institutions to help arrest plunging stock values.
“People think the $250 billion plan is insufficient and that's why markets are falling,” Aso, 68, told lawmakers today in a reference to the U.S. initiative to buy stakes in thousands of financial firms. “They need to make a quick decision to inject capital.”
Aso, who took office last month, is seeking to convince voters his government has limited responsibility for a growing financial crisis that triggered record declines for Japanese stocks last week. His Liberal Democratic Party, in power for but 10 months since 1955, faces opposition demands to call an election as early as next month.
“Aso wants to blame the U.S. and show he's doing his best to help the economy,” said Kazutaka Kirishima, an economics professor at Josai University, northwest of Tokyo. “All he cares about is the political situation.”
Japan's government said Oct. 14 it would halt sales of almost 2 trillion yen ($19.8 billion) of shares it bought since 2002 and ease restrictions on company buybacks to stabilize financial markets. The Bank of Japan, already with the lowest borrowing costs for a major economy, didn't participate in coordinated global interest-rate cuts last week. The central bank said it will offer banks as many dollars as they want in a bid to lower borrowing costs in money markets and free up credit.
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