Corporate Japan achieved a rare feat in the fiscal year that ended last week. None of its almost 4,000 publicly-traded firms filed for bankruptcy protection.
Yet that¡¯s no reason to celebrate, according to analysts who see easy credit conditions standing in the way of a much-needed, corporate restructuring to flush out failing companies and make room for new businesses.
¡°It¡¯s totally unhealthy,¡± says Martin Schulz, an economist at Fujitsu Research Institute in Tokyo. ¡°Japan¡¯s business cycle isn¡¯t working. When no old companies go out of business, no new ones can come in because there isn¡¯t room. The old companies will always compete on price, simply because they can.¡±
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