Japan Is A Mess. Time To Invest?

Anticipating recovery, Wall Street rushes into Japanese stocks

The outlook has rarely seemed bleaker in Japan. The economy is expected to shrink for an unprecedented third year in a row. As corporations pursue American-style downsizing, unemployment is soaring by Japanese standards--hitting a record 4.6% in February and topping the U.S. jobless rate for the first time. Struggling banks are refusing to make loans so they can repair their balance sheets. Fearful consumers are sitting on their wallets to save for an uncertain future.

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