The Bank of Japan Can't Even Give it Away
Have they tried a helicopter drop?
The Bank of Japan will offer as much as 3 trillion yen ($33 billion) in loans to companies for as long as four years in an effort to strengthen the economic recovery.
The loans will be channeled through banks, and the central bank will accept requests from lenders through March 2012, it said in a statement released today in Tokyo. Credit will be extended at the benchmark interest rate, which the board today unanimously voted to keep unchanged at 0.1 percent.
Pressure on Governor Masaaki Shirakawa to do more may mount in coming months as newly appointed Prime Minister Naoto Kan, who as deputy repeatedly urged further BOJ steps, unveils plans to contain the world’s largest debt. The plan is too small to lower borrowing costs and is unlikely to spur the economy or satisfy politicians, said economist Hirokata Kusaba.
“The new program is unlikely to make any contribution to growth in Japan,” said Kusaba, a senior economist at Mizuho Research Institute Ltd. in Tokyo. “The new administration won’t relent from pressure on the central bank to do more as it strives to restore the soundness of public finances without jeopardizing growth.”
Who can say WHAT the new administration will do? I've heard things are a bit wonky over there but have been entirely unable to check as I have been too busy watching our own wonk go mad.