Given these differences, I do not think we are going to see a crash in Tokyo leading to global panic and depression. It appears to me that most of the anticipated major shakeouts are now behind us, though we may feel some aftershocks for a while. Of course problems do exist. For example, there is the issue of the Bank of Japan's reliability in its role as lender of last resort. Another issue is that of the substantial reinforcement of the deposit insurance system, which involves allowing the Deposit Insurance Corporation to support mergers of banks in trouble.
Employment is yet another concern.
The closing down of financial institutions amidst the current economic sluggishness may be expected to exacerbate joblessness. Some encouraging news has been heard, however. Demand is particularly strong for those with computer skills, but overall it seems fair to say that the diversity of the labor market is what has saved the day. On the international level, meanwhile, Japan's domestic financial unrest is adversely affecting confidence in the country's economy as a whole. Markets have a tendency of reaching an overall judgment and applying it across the board.