Crisis in Japan could lead to greater openness

Japan has been able to cock a snoot at the US model of capitalism because of its immense wealth, but, as that wealth fades, the country may be forced to seek foreign money through a more open economy.

The torrent of bad economic news about Japan washing through the media in recent weeks is reminiscent of a once-skilled boxer being beaten up at the end of his career. But unlike such a boxer, Japan has a chance of rejuvenation. Investment bankers in Tokyo, who have been coping with severe losses in their workforces this year, should take note that they could be major beneficiaries.

The US model of capital markets-driven economic growth has one fundamental reason. The US...

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