JAPAN

JAPAN, THE NUMBER TWO ECONOMY IN THE WORLD, OFFICIALLY FELL INTO A RECESSION WITH TWO STRAIGHT QUARTERS OF NEGATIVE GROWTH.

THE SLOW DOWN WAS BLAMED ON THE ON CONSUMERS SHARPLY CURTAILING SPENDING. DEMAND FOR CARS (TOYOTA, HONDA, AND NISSAN) AND ELECTRONIC GOODS (FLAT SCREEN TVS, COMPUTERS, VIDEO RECORDERS, CAMERAS, TELEPHONES, VIDEO GAMES, ETC.) HAS SLOWED. IN FACT, COMPANIES, LIKE TOYOTA MOTOR CORP. AND NISSAN MOTOR CO., HAVE SLASHED THEIR PROJECTIONS AND SALES FORECASTS FOR A FULL YEAR.

JAPAN'S PRIME MINISTER TARO ASO, WHO TOOK OFFICE IN LATE SEPTEMBER, 2008, HAS ALREADY BROUGHT OUT TWO ECONOMIC STIMULUS PACKAGES TO CUSHION THE BLOW OF THE RECESSION.

MASSAMICHI ADACHI, SENIOR ECONOMIST WITH J. P. MORGAN SECURITIES SAID ABOUT JAPAN'S ECONOMY, "WE ARE NOW LOOKING FOR A SEVERE RECESSION, SIMILAR TO THAT DURING JAPAN'S OWN FINANCIAL MARKET CRISIS IN 1997 TO 1998, AND TO THE CURRENT U. S. RECESSION, IN TERMS OF DEPTH OF REAL GDP CONTRACTION."

IN NIKKEI 225 STOCK INDEX WAS DOWN '2.7% YESTERDAY. THE WORLD'S ECONOMY IS IN BAD SHAPE NOT JUST THE ECONOMY IN THE UNITED STATES. IT SEEMS LIKE THIS RECESSION AND HARD ECONOMIC TIMES ARE GOING TO CONTINUE FOR QUITE SOME TIME. COULD IT BE THE TIME TO TIGHTEN ONE'S BELT? COULD IT BE THE TIME FOR BUSINESS TO BE MORE CONSERVATIVE? WHAT DO YOU THINK?