Confirming Indicators

11 Feb

Can be seen just about everywhere.

Look no farther than Hitachi stating that they will cease producing “Hitachi” brand Televisions in Japan this September. The costs of doing business in Japan, along with the increased valuation of the Yen factored with the governments focus on the Tohoku cleanup/infrastructure all factored into one of Japan’s largest producers of electronics dropping from the picture.

Both Sony and Sharp have had their credit rating reduced BBB+. SONY’s Television unit has fallen into debt due to unprofitable margins. This is in addition to a series of other bad business decisions.

Panasonic has also announced record net losses of 780 billion yen, yet the bulk of this was a one time issue from acquiring rival Sanyo.

Mitsubishi Automotive has publicly stated that they are willing to sell the Dutch Auto plant for the grand sum of 1 euro if the new owner will keep the employees who work there.

Japan machinery orders fell almost 7 percent in December.

Suzuki Motors net profits are down almost 5 percent.

Not to mention the smoldering volcano that is the Olympus fiasco. If one were really interested in how graft works in Japan just read up on this story because its a page turner. I think that to a certain degree you can see the whole modus operandi of Corporate Japan in how the Olympus situation unfolded. The issue isn’t so much about how poorly executives handled things at Olympus but how many other corporations have a similar mindset and when will their “mismanagement” come to light, if ever.

It pains me somewhat to write such critical things about the country I have called home for almost 9 years, but I would prefer to accept things as they are rather than as others would have us perceive them.

I am not even going to go into the pork barrel nuclear decontamination crisis which deserves a post of its own… but suffice to say its raining money on companies willing to “clean up” Japan. Yet the actual cleaning is a scandal waiting to break. A number of days ago this story popped up in Yokohama where an Elementary school’s 1 cm of topsoil tested positive emitting 6.85 microsieverts per hour, almost 12 times the government’s legal limit of 0.59 microsieverts per hour. The only thing I am going to say on this is take a close look at a map and see how far Yokohama is from Fukushima.

Meanwhile the Fukushima reactor temps are rising again.

The news just gets better and better


One Response to “Confirming Indicators”

  1. Bill Corfield February 11, 2012 at 1:22 pm #

    Good analysis…

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