08 May '11, 10pm

mustread How Asia copes with America's zombie consumers: Afflicted by historically high unemployment, massive un...

Asia needs a new model consumer. A post-crisis generation of "zombie consumers" in the United States is likely to hobble growth in global consumption for years to come. And that means that export-led developing Asia now has no choice but to turn inward and rely on its own 3.5 billion consumers. Of course, this is not the first time that Asia has had to cope with the walking economic dead. Japan's corporate zombies were at the epicentre of its first "lost decade" in the '90s. Sclerotic companies were put on life-support credit lines by their zaibatsu - like banking partners - delaying their inevitable failure and perpetuating inefficiencies and disincentives that resulted in a post-bubble collapse in Japanese productivity growth. Similarly, the crisis of 2008-2009 led to zombie-creating bailouts in the West. From Wall Street to AIG to Detroit, the US was quick to rescue cor...

Full article: http://www.todayonline.com/Commentary/EDC110509-0000462/H...

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