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 remain weak until determined reform resolve emerges.
The common excuse
Korea's Ministry of Finance recently decided to put another W3 trillion $2.4 billion of the country's W65 trillion pension money into the ailing...