Headline: Japan Exports Drop Record 49% ...

At Bloomberg this morning:

March 25 (Bloomberg) -- Japan’s exports plunged a record 49.4 percent in February as deepening recessions in the U.S. and Europe sapped demand for the country’s cars and electronics.

Shipments to the U.S., the country’s biggest market, tumbled an unprecedented 58.4 percent from a year earlier, the Finance Ministry said today in Tokyo. Automobile exports tumbled 70.9 percent.

The collapse signals gross domestic product may shrink this quarter at a similar pace to the annualized 12.1 percent contraction posted in the previous three months, the sharpest since 1974.

It looks rather a lost quarter of century for Japan (or third?) ... One should be afraid of inflation (unless the financial system collapses), as second largest economy suffers the economic tragedy?

Bankers obviously are fearing their exposure to established corporate sector, as everyone is happy about strong operational start this year. The real estate nightmare will not end with housing. Show me a case where QE (Quantitative Easing) has succeeded!

The Malaysian Insider has a good summary of thoughts on Japanese tragedy by Nomura Research Institute's chief economist Richard C. Koo.