How they will be able to recapitalize around all the bad loans remains a major problem. Their strengthening currency, while an aid to North American exporters, will surely put a drag on their efforts to sustain the recovery. And as a consequence, no one if forecasting a fast recovery. So it is too soon to pass awards around to the optimists or for that matter thank the pessimists for keeping us alert. Nevertheless, the Japanese consumer continues to accumulate vast amounts of low return savings that remain in their country reducing the risk that the economy will slip into a deep recessionary spiral.
Japan is different from the other Asian countries in being less dependent upon imported capital.