The Economist's Digest21

Japanese banking
The big boys are back
Originally from Economist.com Sep.25th, 2008

Summary:
Japanese financial force is back and stronger than others in the West! Mitsubishi UFJ Financial Group agreed to buy 20% of Morgan Stanley in ¥ 900 billion. Normura bought some of Lehman Brothers------its Asia-Pacific business. The boss (of Nomura) called it “a once-in-a-generation opportunity”. Other two JP banks also invested about
$ 1billion in Barclays and Merrill Lynch earlier this year.
Both MUFG and Nomura face huge difficulties in managing due to corporate cultural problems. Japan emphasizes on loyalty and seniority, while America looks on value and youth.
On the other hand, the profit may not appear so fast, so the Japanese banks should endure a period of recession in these departments. Nevertheless, Japan is experienced but with not-so-good economy and population structure------so its business go abroad.
Japanese banks know more about recessions than other world’s banks. That’s why their investment to USA banks is a good sign.

My opinion:
Wise men always know when to put their hands in proper places. Actually, as the Economist said before, American economy will still come back------ if the Congress and the government don’t do anything or don’t interrupt the market too much. Then, the Japanese look at this good opportunity. Things they did are just like putting money in the stock market when 911 or during 2000.
Yet the cultural difference is more important and difficult to get over. Actually, I can’t say which enterprise culture is right. In 21st century, the American one seems more effective. Is that really right? Well, in oriental opinion, this may lead to social problems. Especially Japan is a population-older country.
It’s good news to see Japanese banks to buy American banks, which makes Asian economy more powerful.