Yoshimi Watanabe, the financial services minister has decided to put his two cents in regarding the mortgage crisis in the United States in an interview published on Monday, March 24. In regards to the US mortgage crisis which can be deemed as one of the factors hurting the US economy, Watanabe suggested that the US government should use public funds to keep its financial system out of the water and to ease the chaos as a result of it.
“It is essential (for the US) to understand that given Japan’s lesson, public fund injection (into the financial sector) is unavoidable,” he said during his interview with Financial Times. Watanabe said that his country is willing to bestow this experience with the US coming in April in Washington DC where the finance ministers will meet up for the Group of Seven meetings.
Watanabe said that Japan is ready to take action if the need arises. He adds that the US mortgage crisis is not a straightforward problem. It is possible that he indicates that it has been a problem that has crept its way up until now.
The US mortgage crisis has also weakened the US dollar even further.
In short, Japan is suggesting that the US do what it did in the 1990s. This is the same thing that Japan has done to combat the financial crisis.
The US mortgage crisis is one of the factors considered to harm the US economy. US Democratic co-frontrunner Barack Obama has started to link the Iraq War with the nation’s economy.
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