Japanese reinvestment

Sony may be cutting jobs, but in much of Japan, companies are investing in their businesses. It's a smart thing to do when no one else is doing it. To the Japanese, the long-term is key to decision making.

Conversely, even when times were good, American businesses were only planning from quarter to quarter (while the Japanese had a 5-7 year plan). I guess when U.S. CEO stock options and bonuses are based on quarterly results, that's what you're going to get.

Time will tell if the current Japanese investment, and innovation, allows them to pull ahead of the pack when the recession dust settles. Or perhaps they will swimming in costly overcapacity.

My bet is on the long-term view.






http://www.nytimes.com/2008/12/12/business/worldbusiness/12yen.html