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Let's take a historical look at what happened when the Japanese tried it, then read through my bank analsyses again. This was emailed to me from a regular reader:

Hi Reggie:

I'm not sure what your subscribers are implying about the outcome of the Fed following a banking rescue plan based upon Japan's bubble and aftermath. All through the 1980s, and even in 1990, the world's 12 largest banks, by market cap, were Japanese.

The short story is, not a single one of these banks survived (except maybe Nomura) in its original form and all have now disappeared, through bankruptcies and emergency takeovers, from the largest market cap list.

The truth of the matter is, when the Japanese government tried to prop up the banks, 18 of the top 20 banks in the world were Japanese. Look what happend to them - ALL of them! Click the graphic below to enlarge.

top_banks_in_the_world.png