Tuesday, March 24, 2009

Update Debt to GDP Chart, Japanese Exports, and the Great Curry Bailout

This is a Morgan Stanley breakdown of the same debt chart, I showed yesterday. The stunning jump in household and financial debt really jumps off the page. The really scary fact is that GDP hasn't really taken a huge decline yet (like it did during the Great Depression).

Not much to add here... Japanese exports tumble 49%!

"Japan’s exports plunged by a record in February as deepening recessions in the U.S. and Europe sapped demand for the country’s cars and electronics.
Overseas shipments fell 49.4 percent from a year earlier, the sharpest decline since at least 1980.

“There’s been a structural shock to the manufacturing sector,” said Hiroshi Shiraishi, an economist at BNP Paribas in Tokyo. “So yes, the government can create demand temporarily, but that can’t fill the export gap forever.”

Exports of automobiles tumbled 70.9 percent from a year earlier and shipments of semiconductor parts and devices slid 51.1 percent, the ministry said. "

Wow - 71% decline in auto exports. I find it funny that the Japanese can be frank about government stimulus be a temporary fix - the gov't can create demand temporarily, but that can't fill the export gap forever."
Just when you thought no one else could line up for a bailout - enter the Great Curry Bailout in the UK.

"Owners of Indian restaurants in the east Midlands town of Leicester, which has a large minority of Indian origin, have started a campaign at the local and national levels to urge the government to come to their rescue in the same way it supported failing banks."

That's precious. When Applebee's and The Olive Garden line up for a US bailout, I'm heading to New Zealand.

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