what do u make of this report, page-2

My 2 cents worth:

1. It's to boost liquidity of the commercial banks, similar to 'Helicopter Ben's quantitative easing, but at a much smaller scale.
2. It's pretty much a non-event by itself, given the small size of the package. However, I suspect it's just the start of a serious of policies.
3. I believe it is for sure targeting certain sectors (as suggested in the article), or even companies, since most of the major corporates in Japan have a very robust balance sheet, eg. don't need the money.
4. The mentioning of the tourism industry is interesting. I've seen another article a while ago that Japan is trying to grow the Chinese tourists by 10 fold in next 5 years. So it seems the government is actually following up.
5. There won't be direct impact to AJA. The banks that won't lend money to AJA wouldn't change their mind because of this move from the government.

Overall, I think it is a positive news, a very minor one though, as least the Japanese government is trying to do something with the economy.

My view remains that Japan will be relying on export to pull itself out of deflation. It will take time, but it will eventually get there.

Cheers and DYOR.

Snowfree