Professor calls Japanese bank regulators 'liars'

[Taro Toporific]

Professor urges Japanese banking regulators to be truthful
Pacific Business News, Sept 26
...Kashyap a professor at the University of Chicago, while he was visiting Tokyo this past week to give the Cabinet Office a presentation on how to mend Japan's financial sector. ... "The regulators have clearly lied about this," Kashyap told the Daily Yomiuri. "Every time one of these banks fails, the condition is vastly worse than what the regulators certified within the past six months."
The newspaper described Kashyap as "a plainspoken, irreverent man who gives the impression he is impatient to get things done" who says many Japanese banks are "bankrupt by any proper evaluation" yet are still lending money to companies that cannot possibly repay them.

[Samurai_Jerk]

We should start a pool and bet on when the Japanese banking system will finally totally collapse.

[Taro Toporific]

I we should start a pool and bet on when the Japanese banking system will finally totally collapse.

OK. I bet on "NEVER" ...
...except in the sense that Japan may sink below sea level in a hundred years.

Monitary systems exist on mutual trust. That is, the mutually agreed quazi-religious belief that pieces of paper and loans of money that doesn't exist is "valuable." The Japanese seem perfectly happy to believe their "liars" and the LIE . Since they not think of the problem it does not exist allowing their bankrupt System to continue for more than 20 years.

[Steve Bildermann]

I we should start a pool and bet on when the Japanese banking system will finally totally collapse.

Well actually in many ways it already has, back in 1989.

It's just that everything is happening in economic slow motion. Right now we are in a deflation cycle (same things getting cheaper each year) which is the classic ripple effect of a economy faltering.

When the market bottoms out (and we will be seeing that happen round about the end of 2006) bankrupcies will mushroom and unemployment will start to rise. As Koizumi knows you can paper over that with more public spending but that has been tried four times already and each time it been getting worse and worse.

Simply put living standards are going down,people are getting poorer but there is less and less opportunity to start a business and make money.

How will it end, I don't know. Maybe it will get better, I don't know. Maybe it will stay the same, I don't know.

Trouble is Koizumi and his band of merry men don't know either.

[Captain Japan]

The regulators have clearly lied about this," Kashyap told the Daily Yomiuri. "Every time one of these banks fails, the condition is vastly worse than what the regulators certified within the past six months."
The newspaper described Kashyap as "a plainspoken, irreverent man who gives the impression he is impatient to get things done" who says many Japanese banks are "bankrupt by any proper evaluation" yet are still lending money to companies that cannot possibly repay them.

There were a few articles a month or so ago that talked about how the FSA was being lied to by UFJ during their investigation. Like this one...

FSA to file charge against UFJ, ex-execs
Asahi Shimbun

The Financial Services Agency plans to file a criminal complaint against UFJ Bank and several former bank directors as early as this month, sources said Friday.

FSA officials believe the bank systematically and institutionally violated the Banking Law. Specifically, the complaint says UFJ thwarted an agency inspection last year by concealing or tampering with documents on its debtors, sources said.