At the least, Japan now has a war chest to battle a sudden collapse of the banking system that would have devastating global ramifications. While doubts surround the program, some analysts see it as an important first step. But solving Japan's banking crisis requires closing shaky banks, forcing mergers, and finally cutting off life support to deadbeat borrowers. Faster movement on bank reform, bigger tax cuts, and more government spending would all help relieve pressure on the rest of Asia. Yet in the end, Asia's most realistic hope may simply be that Japan find the means to brake the economy's slide into a deeper deflationary spiral.
Japan is unlikely to muster the strength to haul the rest of Asia out of recession.
Ultimately, the biggest wild card for Asia may lie across the Pacific. If Chairman Alan Greenspan of the Federal Reserve Board can prevent the U.S. economy from slowing down, keep financial markets buoyant, and keep imports rolling in, then Asia stands a chance of hitting bottom soon and starting down the slow road to recovery.