When it began a phone-in advice service for investors in April, the number of calls was triple the forecast. Even small savers are much more aware of wider opportunities. This kind of choice we were not given before. Hashimoto has been criticized for policy flip-flops, most recently for his initial reluctance to cut taxes. Many people in the ruling party and the bureaucracy are reluctant to have vested interests disappear.
Optimists argue political leadership is awakening.
Though they were slow, the PM and his Liberal Democratic Party did push aside the Finance Ministry, guardian of the budget and traditional architect of economic policy. Plainly, when faced with heavy-duty disaster, even the hidebound LDP stirs. Which is why even a recession, if it happens, could be a blessing. For one thing, the tsunami of red ink from a much deeper slump would make it impossible for many creditors not to cut off defaulted borrowers, and firms not to lay off excess workers. Moreover, the resulting distress and desperation may finally make the agonies of sweeping reform palatable to Japanese and their business and political chiefs.