By James McKee
The Japanese people are still suffering after the recent earthquake and tsunami that decimated the island nation recently. The subsequent nuclear disaster and the damage it caused will be felt for years (and possibly decades) to come. Japanese factories and other production houses are unable to produce goods and as a result are losing a lot of money. Some Japanese companies such as Nintendo and Sony are finding themselves inside of hurricanes of loss that may be too deep to dig out of. Nintendo has issued information stating that they have 2 periods of consecutive loss, and Sony has come forward to say that they are losing money as a result of their Playstation Network being down.
Sony’s problems may just be beginning since the backlash from many players utilizing their systems have been negative to say the least; Sony’s PSP Go is a device in which content can only be downloaded to the device. Without a network no one can use the system that they paid for, and this has many consumers up in arms (and rightfully so). Sony may see a consumer response that is unlike anything seen in recent memory, many promises and even the very premise on which devices are being sold has been betrayed.
This sort of incident will certainly hurt the nation of Japan overall since Nintendo and Sony are both heavy hitters in the country’s electronics industry. Japanese automakers such as Toyota, Honda, and Nissan have also been faltering. These car companies are without a doubt cutting back production, and in all likelihood will be suffering substantial loss as a result of closing their production lines. If the Japanese economy does not recover soon then the JPY will be looking at a downward slope on the online forex exchange. The time for change is now for Japan.
Japan needs to consider its options carefully and figure out exactly what may lie in store for them in the long-term. Unfortunately there is no easy way to predict what sort of fallout is going to occur from the nuclear and other incidents. The nation of Japan is in serious trouble and unfortunately their allies are not in any better shape. The United States is finding itself in a fiscal crunch of their own with a deeply segregated bi partisan system which is not aiding their recovery, and in the long run Japan may find itself reaching out to China.
About the Author
Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the online forex trading regularly.
