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Bailey McCann, Opalesque New York: Europe's recent downturn could be the result of failing to understand the lessons already afforded by Japan's lost decades, according to delegates at the recent Opalesque Japan Roundtable.
"In ten years time we will come back and Japan will probably be okay while Europe will
still be a disaster. Everybody will ask, "Why was it impossible for Europe to learn from Japan?" I
suspect that will be the big lesson when we'll be looking back in the next 10 or 15 years," says Alexander Kinmont, CEO, Milestone Asset Management.
Kinmont notes that the currency is no longer a dead wight on the Japanese economy. He adds that the impact of that will be a slow, but consistent growth factor for the Japanese economy. On the European side, investors literally woke up on Thursday to an even harsher currency picture after the Swiss National Bank decided to change its policy on capping the Swiss Franc against the Euro. That decision caused an immediate and major market event that will last well beyond Thursday's volatility.
Two Greek banks also requested emergency liquidity assistance as residents made a run on banks there this morning. Close watchers of recent events may be forgiven for suddenly focusing in on those buy gold infomercials.
Still, roundtable delegates note that as Europe descends back into crisis mode Japan could be poised to br...................... To view our full article Click here
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