Continued 4) The method GM and GMAC used to increase car sales is essentially the same as US financial institutions used in providing loans to house buyers of less credibility. While each money borrowers were to be dealt with separately, financial engineering mishmashed credibility of all levels to produce untraceable gray level.
5) Sub-prime scandal caused credit crunch across the board, bringing huge losses to US banks and other financial institutions, which naturally resulted in tightening of their lending policy. Car sales in US dropped dramatically which caused a devastating effect on the Japanese auto industry as well. The entire US auto industry including their subcontractors are doomed, and so is the Japanese auto industry. Many companies will go out of business, creating a phenomenal number of job losses. Although Toyota became the world's largest automobile manufacturer, surpassing the ailing GM, in 2008, Toyota just announced that they expect a huge operating loss (150 billion yen) for the first time in its history. So there you have it. Japan is a nation to import materials and export finished goods to survive. Survival is not essentially an issue for US, I assume, because it is more or less self sufficient. Japan is essentially a country depending on consumption in China and US. It benefits from free trade but it wants to defend its agricultural industry. No country can afford pure free trade. Free trade is just a pipe dream. Obama government already announced its Buy-Americanism on steel. Minoru Mochizuki --~--~---------~--~----~------------~-------~--~----~ Persons posting messages to not_honyaku assume all responsibility for their messages. The list owner does not review messages prior to posting, and accepts no responsibility for the content of messages posted. -~----------~----~----~----~------~----~------~--~---
