Once the necessary reform measures pass the Diet, including a bankruptcy law, then the Japanese public may be more willing to allow the government to use some of the money in Japan's huge postal savings system to help the banks. Each country has its own unique set of difficulties and the solutions for each country will be different. This would help to revitalize the companies by providing capital at the rate of the day and would provide incentives for foreign banks to convert debt into equity. In Thailand, meanwhile, the government can later dispose of the shares they own in an orderly fashion in the market. The Thai government has much lower foreign exchange reserves.
Banks are still paralyzed, but signs are emerging that they are raising new local funds.
Thai companies are having difficulty getting trade financing. Malaysia, Indonesia, and Russia are now facing deep political and social problems that cannot be solved through financial means alone. A global lack of investor confidence is at the heart of the current problem. Once investor confidence is lost, it is very hard to restore. Time should not be wasted debating what new institutions or global financial regimes are needed for the future.