Japan and Korea: moral hazard lives on

News that both Korea and Japan are committing to more bailout packages, hasnÆt exactly been greeted with enthusiasm in the financial markets.

Long lives moral hazard. That's the perception one can't avoid when both Korea and Japan announce yet more bailout packages to prop up their local financial markets and economy. These efforts alone are unlikely to sustain a turnaround for the markets.

In the case of Korea, investors are losing patience in the reform process. As for Japan, the latest package raises more questions than answers. If both countries are still in denial, their stock and currency markets will likely...

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