Is Nintendo really d00med!?

[Mr Khan]

Viper1 said:

Mr Khan said:

Viper1 said:
Nintendo isn't even in difficulties. They had foreign exchange rate difficulties. That accounted for 3/4ths of the loss they took in Q1 and Q2. They already had profit again in Q3.

Plus Japan has moved to fix that through long-term money printing, the only thing available for them to do since they've been in the liquidity trap of zero-level interest rates for a decade solid, so cannot push interest rates down to devalue the currency.

Funny how the US and Europe have had a decades long case study in Japan and have thus far completely failed to see what Japan did wrong.

The difference, i think, is that the other industrialized countries haven't quite made the same mistake. Essentially Japan sought to push beyond the bubble burst of the early 90s mostly through construction, a process that has only half-succeeded by locking the economy more or less in stasis since then. The Stimulus of the late Bush early Obama administration was a flash in the pan compared to the sustained campaign the Japanese have put up.

Of course, the Japanese have the opposite currency problem. Outside investors insist on viewing it as a stable currency, which despite all the expansionary fiscal policy and loose monetary policy, had appreciated too much in light of the necessary depreciation in USA, UK, and EU. They had to keep printing money not to try to jump-start the economy, but fix the currency problem (which will indirectly boost the economy by upping exports)