Bank of Japan announces fresh stimulus to boost growth

[naaman fletcher]

4. well,

I am not disagreeing with you on the Yen, but I disagree strenuously on the importance of banks failing.

When banks fail, their assets are picked up and utilized more effectively by younger, newer, and better (i.e. not dumbasses who caused it to fail in the first place).

When banks are not allowed to fail, all sorts of government policies are used to prop then up under the theory that they will lend more. As we see in Japan and not the US, there is no increased lending. Rather, the banks hoard their cash to try to survive, and ultimately don't because, remember, they are the idiots that ran it to the brink in the first place.