Chapter 1000: Reborn(2/2)
This report seemed more like taking the position of the United States, so it was criticized by many Japanese as a financial capitulation statement.
But in any case, since then, the Japanese government has decisively cut interest rates and implemented a series of policies to expand domestic demand.
Such as expanding investment expenditures with public investment as the core, promoting private investment, abolishing the preferential tax system for small savings, reducing savings, etc.
The Japanese economy has finally begun to stabilize, the appreciation of the yen has also been alleviated to some extent, the economy has gradually begun to return to normal, and there is no domestic inflation.
So this wave of operations is actually very successful and effective.
In contrast, there are actually only two hidden dangers that can be called side effects.
First, the continued appreciation of the yen has affected Japan's exports, with the biggest impact mainly concentrated on small and medium-sized enterprises.
These companies are small in scale, but they are an important part of the Japanese economy.
The Japanese government’s rescue policy at this time should definitely give priority to helping and saving these small and medium-sized enterprises.
But the Japanese government's policies all take care of big companies.
Although those large Japanese companies also have an impact, they have various methods to minimize the impact.
This has resulted in large companies that were not affected by the situation getting rich, while small companies are still sitting back and waiting for death.
Second, low interest rates mean putting liquidity on the market.
Once it became easier to borrow money, there was a lot of lending.
As a result, there will be more money in the market, and more money must have a place to flow.
Those are just two places to go.
On the one hand, it flows to the real economy, causing inflation.
On the other hand, it flows into the capital market, causing asset bubbles.
For Japan, the latter problem has obviously occurred, with more money flowing into the stock market and property market.
This resulted in Japan's national average land price rising by 52.6% in 1986.
Tokyo was even more abnormal, rising 120.4%.
The Nikkei Index rose by 50% that year.
And don’t forget that the real estate purchased by Ning Weimin is located in the core area of Tokyo.
The stocks he bought were also the companies that benefited the most from the rapid appreciation of the yen.
Under this economic trend, his investment behavior cannot even be described as a Davis double kill.
Let’s put it this way, taking the current situation as an example, the effect of the three interest rate cuts since the beginning of the year is immediate.
Even Ning Weimin himself was shocked, even though he had ignored it for just two months and took the time to pay attention to the market. He thought he had read it wrong.
As the core area of the core city, the average price of his properties has doubled, and the current market value is almost 2.4 billion yen.
The momentum of the stock is even stronger because I picked the right dark horse stock, Banwa Industrial.
Chapter completed!