Japan's 2nd most criminal industry is cracking

[Taro Toporific]

Cracks appear in Japanese construction
Financial Times, UK - 19 MayWhen four former Morimoto executives were arrested last week for alleged accounting fraud, it sent a clear message that the woes bedevilling Japan's small to mid construction firms...

[Captain Japan]

Despite their poor financial condition, many of these companies have been reluctant to shed staff. Yoji Otani, construction analyst at Credit Suisse First Boston, says: "Regional small and medium general contractors face tough conditions in that they may see their markets shrink further even while they retain significant overcapacity in terms of employee numbers."

But if they are all in such bad shape, someone tell me how nearly all of their stock prices have balloned in the last year. Over a year and a half ago there were a dozen companies on the TSE in the construction sector who were about to implode (stock prices just under 20). But not now. Most have gone up by a fact or 5 or 10. And nothing got better! Absolutely nothing! The market itself only got worse!

Anyone who thinks significant reform is taking place ought to look at this evidence that still the zombies are roaming. The entire industry is Japan's version of welfare.

[Taro Toporific]

Anyone who thinks significant reform is taking place ought to look at this evidence that still the zombies are roaming.

The Party Line is that the Japanese "recovery" is based on the massive demand of China and "somehow" the J-zombies are landing mega-construction projects there. {{I can't imagine how any Japanese construction firm can make any competitive bids with their zombiesque high fixed costs.}}