Get ready for ‘Toyota shock’

Get ready for ‘Toyota shock’: “Those who argue Japan is better positioned than peers to weather the global crisis have a point. Japan’s roughly $US15 trillion of household savings offers a cushion the US, Europe and China lack. Japan also has demonstrated a remarkable ability to live without much growth.

Yet the yen’s powerful rally is knocking down one of the three pillars supporting the country, the others being ultra-low interest rates and super-loose fiscal policy. Its gains fly in the face of conditions in an economy that shrank at an annual 1.8% pace in the three months ended September 30. That’s where the world’s second-biggest economy finds itself.”

The rush to invest in the yen maybe somewhat premature. Same with the Euro maybe.

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