NJ5 said:
SlorgNet said:
The numbers are accurate, but completely irrelevant.
Japanese capitalism is structured into gigantic industrial-financial networks called keiretsu. Heck, Mitsubishi Motors lost money for seven years, but stayed afloat - the MTFG keiretsu considered it was important to retain a domestic car biz.
Since Japan is, unlike the US, a net creditor in the world-system (other countries owe it money), it can bail out its electronics industry until the cows come home. It did this during the post-Bubble crash of the 1990s, and it will do it again if it has to.
Fortunately, it looks like East Asia, Russia, and the EU are all throwing money at their economies, so a global recovery should start this spring. Sony will ride out the storm with minimal damage - demand from Russian and Chinese consumers will start to compensate for the decline in US demand.
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Interesting, I had never heard of this Keiretsu name. However according to wikipedia Sony is not in that system. Is this wrong?
@Arius Dion: Good to know :)
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It looks like Sony would have to sacrifice control of their company to be a member of Keiretsu. So the numbers are relevant, Keiretsu is irrelevant.
I see no reason why Sony won't pull through somehow no matter how badly many want to see them sink.
Sony will come out of it, of course, but they will likely lose a lot of assets in the process.
