Banks have not yet said whether they would have a bill collection agency contacting Aiful to recover their money.
Of course Japanese stock markets declined. But they didn't seem to panic. What slightly surprised Guido, though, was that other Asian markets also declined, for what appeared to be the same Aiful reason.
Though $3 billion or so is not chump change, one would think, based on recent financial crises, that this would be just another misstep on that potted road to "recovery".
Is there something more awful about Aiful that we should be awfully aware of, before Aiful becomes too awful?
Well, the comments of Japans new postal / banking minister didn't help much. A few days ago it was implied he would be seeking a debt moratorium for small businesses. Seems there's a lot of mom and pop operations that are about to say sayonara. Now isn't that a surprise, after all the good news we've recently read about growth in Japan's GDP, etc. ?
Not really, as my earlier article, The Sinking Sun, explains.
Japan is going through the same "adjustment" as the US. In other words, people are being fired and not hired.
Whether the problems of Aiful indicate the awful times of October 2008 are returning, it's too early to tell. One day does not make a trend. Still, the minor tsunami < so fair > caused by Aiful's problems is an indication of just how fragile everything still is, and will most likely still remain.The laws of probability make it almost a certainty that sooner or later some misstep, somewhere, is going to result in falling off that proverbial cliff. It's only a matter of time.
Again, as one wise investment pro has often repeated - Risk is high.
"Facts are stubborn. But statistics are more pliable." - Mark Twain
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