The errors of Japan's ways create great opportunity.
The first great opportunity that Japan's downfall has created has been going on for a decade now which is to borrow Japanese yen. Right now you can borrow for less than 2%!
Plus there is a big chance that the value of the yen will fall. An article by Bernard Baumohl on page 34 of the August 6th issue of Time magazine entitled “Recovery at Risk” outlines four disaster scenarios that could hurt the recovery of the U.S. economy. One of these scenarios is that Prime Minster (of Japan) Koizumi's proposals to fix the economy may never see daylight. This could cause the yen to plummet toward 160 yen per dollar (it is now about 125). The article puts the probability of this happening at 65!
Such a disaster scenario would bring yen borrowers a fast 28% forex profit on their investment and this is one reason why I recently once again started borrowing yen!
Let's look at the second great Japanese opportunity in the next message.
Until then, good global business and investing!