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Your tax dollars at work: Japan style…

More afflicting the afflicted to comfort the comfortable from Bloomberg. Governments appear determined to protect the asset values of the very wealthiest in society using the taxes paid by the less well off. We do wonder if the net taxes paid by these corporations after this blatant scam will be positive:

The Japanese government may let a state-owned lender purchase stakes in companies that are struggling to raise funds as the economy deteriorates, according to a Trade Ministry proposal.

Under the program to be submitted to the Cabinet next month, the Development Bank of Japan will buy preferred and common shares in companies, the ministry said in a statement in Tokyo today. The government will guarantee a portion of the investments should the companies go bankrupt, it said.

The initiative may help businesses whose earnings are falling and borrowing costs are rising as global demand for Japanese goods plummets. Exports dropped an unprecedented 35 percent in December, deepening the economic contraction that the Bank of Japan says will become the steepest in the postwar era.

“Should big companies collapse, it would create a large number of unemployed workers and may trigger a series of failures among smaller companies,” said Masaru Hamasaki, a Tokyo-based senior strategist at Toyota Asset Management Co., which oversees the equivalent of $3.3 billion. “The purchase is meaningful in that it will likely prevent this from happening.”

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