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1 billion out of combined loans of$22 billion, fairly respectable damages of about 10 percent; MOF and Nomura, on the other hand, advised investors only to buy – and never, ever, to sell – and as a result those who stayed in the market squandered 50 to 60 percent of their investments between 1989 and 1999. The Ministry of Finance is still ordering pension funds and insurance companies to buy. Japan might be in better shape today if the banks had gone on listening to Madame Nui's toad.
4. Information
A Different View of Reality
Men take their misfortunes to heart, and keep them there. A gambler does not talk about his losses; the frequenter of brothels, who finds his favorite engaged by another, pretends to be just as well off without her; the professional street-brawler is quiet about the fights he has lost; and a merchant who speculates on goods will conceal the losses he may suffer. All act as one who steps on dog dung in the dark.
– Ihara Saikaku, "What the Seasons Brought to the Almanac-Maker" (1686)
A countryside of legendary beauty is ravaged, and what was once reputed to be the richest nation in the world runs out of money To understand how such things can happen, we must come to grips with an issue that disconcerts writers on Japan so badly that when faced with it they ordinarily set down their pens and look away. It is the quality of sheer fantasy.
We have entered a twilight zone where dams and roads carve their way through the landscape without reason and money comes from nowhere and goes nowhere. We cannot dismiss the air of unreality in Japan's public life lightly, as it is the very air that its officials breathe. The facts about much of Japan's social political, and financial life are hidden so well that the truth is nearly impossible to know. This is not just a matter of regret for academic researchers, for a lack of reliable data is the single most significant difference between Japan's democracy and the democracies of the West. Why have so many students of Japan and commentators by and large ignored the issue of how the nation handles information? I believe it is because our cultural biases run much more deeply than we think. While experts on Japan know all about the commonly encountered difference between tatemae (an official stated position) and honne (real intent), they tend to view the discrepancy as a negotiating ploy. It hasn't occurred to them that the fundamental Japanese attitude toward information might differ from what they take for granted in the West. But it does differ, and radically so.
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