Wednesday, April 8, 2009

Problems in Japan


Posted by: Thomas Gillick

Recently more and more companies in the United States are running into insolvency problems and are even in fear of going into to bankruptcy. The primary reason for this is our struggling economy but the domestic markets are not the only ones going through very tough times. Many companies in Japan are running into the same problems as the companies in the United States are. Japan’s corporate bankruptcies have rose to a six year high just recently due to the fact that more and more companies are struggling to close their books. Bankruptcies have rose 14.1% since last year the most since March 2003. Companies that were forced to close include Azel Corp, which is a real estate company. This was the 14th publicly traded company to go bankrupt. Part of the reason is the lowering value of real estate. Also Japan is running into problems due to the lack of exports partially due to the lack of manufacturing confidence. Japan much like the United States is trying to stimulate the economy by putting 100 billion dollars into the markets and making available 37 trillion yen to companies that are struggling. As consumer confidence goes down companies will continue to run into insolvency problems not just in the Untied States but also around the globe.

Sources-
http://www.bloomberg.com/apps/news?pid=20601101&sid=aue6zRIi.onQ&refer=japan
http://news.surfwax.com/taxes/files/Bankruptcy.html
http://www.bloomberg.com/intro3.html

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