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Thursday, November 27, 2008

Japan's Economy: "the world stopped turning"

by Calculated Risk on 11/27/2008 09:45:00 PM

From Bloomberg: Japan’s Recession Deepens as Output Falls, Consumers Spend Less

Japan’s recession deepened last month as companies cut production, consumers spent less and fewer people looked for work.

Factory output fell 3.1 percent from September .... Household spending slid 3.8 percent ...

Companies surveyed said they plan the sharpest production cuts in 35 years as exports decline in the wake of the worst financial crisis since the Great Depression.
“This is an unprecedented export recession,” said Richard Jerram, chief economist at Macquarie Securities Ltd. in Tokyo. “The world stopped turning for about a month and a half after the middle of September ...
And also from Bloomberg: Panasonic Cuts Profit Forecast on Prices, Demand Drop
Panasonic said prices for flat-panel TVs will probably drop 30 percent this fiscal year ... because of deteriorating demand for consumer electronics.
``Even such a successful company as Panasonic can't weather this harsh economic environment,'' said Naoki Fujiwara, who oversees about $720 million at Shinkin Asset Management Co. ``Plasma TVs, digital cameras, camcorders and DVD players: demand for these products has completely died down.''
Shutting down the Home ATM equals far fewer flat screen TVs. Hoocoodanode?