Japan's bailout

Japan tried bailing out its banks in '98 and '99. The result-it didn't help the economy and in 2003 the government had to take over 2/3 of the voting stock so that it would control the company. As usual, once the government begins to intervene in business it has to take over more and more of it to fix the problems caused by earlier intervention. The Japanese only spent 10.1 billion "saving" banks, and already it looks like nationalizing the Resona bank will become a model for future government action. Resona is going to cut the salaries of its almost 20,000 employees by 30%-these are the kinds of results government bailouts lead to.