If we did know which merger, we would've placed it on the notes. Unfortunately, we didn't.
Also, in a way, yes but also no? It's a bailout, but since the BOJ is an independent entity, if they're like other central banks, it's more likely the money used on the loans are simply printed rather than gathered from the government's revenue. A lot of the response during the GFC are somewhat copied from the actions of the Bank of Japan. As stated in the Keika Rules, the government buys troubled assets from distressed firms, similar to what the American did with the Troubled Assets Relief Programme (TARP)
From page 12, about fair market value for non performing loan. How does it work?
So, say a lender got 1 million loan they can't pay. The creditor can reevaluate, find it's lower (say, 700k) and have that as a new amount of loan? The 300k difference then got written off?
Also, how does a reverse merger allow different playing rules in the accounting?
From page 12, about fair market value for non performing loan. How does it work?
So, say a lender got 1 million loan they can't pay. The creditor can reevaluate, find it's lower (say, 700k) and have that as a new amount of loan? The 300k difference then got written off?
Also, how does a reverse merger allow different playing rules in the accounting?
non-performing loan is reevaluated to see how much of it can be recovered. in reality, the non-performing loan probably wouldnt retain even 50% of their value. but yea the loss will be written off as Bad Debt.
From page 12, about fair market value for non performing loan. How does it work?
So, say a lender got 1 million loan they can't pay. The creditor can reevaluate, find it's lower (say, 700k) and have that as a new amount of loan? The 300k difference then got written off?
Also, how does a reverse merger allow different playing rules in the accounting?
Indeed, though as far as I'm aware and within today's UK GAAP, you do have to record the difference as a loss, specifically impairment loss. You simply can't write it off and just ignore it, atleast with our current rules. Though, reducing the book value might persuade the BOJ more on thinking that their loan would be worthwhile to provide to the New Sankai.
Though, Japan is a different jurisdiction and this is set at a less regulated time, so there might be situations where it could happen. I'm not that familiar with their regulatory environment at that time.
In mergers, if I remember correctly, they would need to reevaluate everything from the target company and add that to the surviving company's balance sheet. Probably the tricks are made around the chaos that entails.
Well, if looking at it from hindsight, its good use of taxpayer money since it would stop Japan's economic crash, which avoids the "lost era" where citizens suffered greatly. 🤔
So what I understand they effectively did was say they had a loan for 1 million but realistically could only get 500k for it. Instead of marking that 500k loss, during reverse merger the new company only sees the loan worth 500k, not 1 million. Thus they wiped it from their books. Of course they would still have to pay somebody for the money in monthly payments, and they used the boj loan as a bridge until they can cash out on the unrealized assets to cover their losses
Of course this only works since the companies are medium sized cause they would risk the yen being attacked if they were big. Thus probably why they are buying the big bank through a foreign firm
@Rumor and @AlmondMagnum Good points, I forgot that the setting was already in an alternate history, thanks! Though I do wonder, for folks who have read the raws/original LN, does the alternate history play a larger role later in the series? So far it just seems to be a way for the author to incorporate "nobles/aristocrats" in a setting they wouldn't be able to if it was just straight IRL (and also avoid references to real life politicians/finance figures lol), but I'm wondering, do the changes to Japan's defeat in WWII influence anything else in the manga so far? Like, are relations with the US better or worse, did the Cold War last for longer or shorter (a lot of anime, like SPT layzner from which my icon comes, had the USSR hanging around till the 2000s lol), or so on?
I cannot understand any of this economic stuff at all but thanks SSS.
Though I do kind of wonder if messing with history like this might have unintended consequences for our heroine thanks to the butterfly effect. As awful as Japan's economic collapse in the 90s may have been, I wonder if reviving it during that time period might instead lead to an even bigger crash, or political instability, or something down the line.
tldr: she's pushing the bubble burst back by hitting the parts of it that pop first with tape beforehand, japan has not changed their economy AT ALL since this happened in the 90s, and now it's the standard for all world governments to dump money into bubbles of profit to create a tent pillar that the rest of the economy uses as a base, in the US 2008 it was housing...and the second that collapsed they bailed out the banks and made them invest in the next tent pole bubble...social media, and now that is bursting here in the US with all the social engineering mixed with economic exploitations that create phantom billion dollar companies like meta and google that have no assets to fall back on other than their inflated phantom numbers
tldr: she's pushing the bubble burst back by hitting the parts of it that pop first with tape beforehand, japan has not changed their economy AT ALL since this happened in the 90s, and now it's the standard for all world governments to dump money into bubbles of profit to create a tent pillar that the rest of the economy uses as a base, in the US 2008 it was housing...and the second that collapsed they bailed out the banks and made them invest in the next tent pole bubble...social media, and now that is bursting here in the US with all the social engineering mixed with economic exploitations that create phantom billion dollar companies like meta and google that have no assets to fall back on other than their inflated phantom numbers
Thanks. Genuinely wondering but are social media websites as crucial to the present day economy as housing is? Like I can certainly see how Google is important given the reliance of the economy on search engines and such, but 'social media' specifically like Facebook and Twitter seem more economically marginal, as people don't "need" them in the sense they needed housing (folks need someplace physical to live) or search engines (jobs, buying things, etc. require or at least are helped by finding stuff easily on the Internet).
Thanks. Genuinely wondering but are social media websites as crucial to the present day economy as housing is? Like I can certainly see how Google is important given the reliance of the economy on search engines and such, but 'social media' specifically like Facebook and Twitter seem more economically marginal, as people don't "need" them in the sense they needed housing (folks need someplace physical to live) or search engines (jobs, buying things, etc. require or at least are helped by finding stuff easily on the Internet).
well, bubbles of profit also mean bubbles of government influence under a fiscal bubble system, and google IS a social media company, as their entire model is to tie you to the rest of society through media, even though they are a search engine you are connected to the wider society through the media you find on google, and currently the US is feeling the burst of that bubble (the banks in charge of silicon valley's money have all filed for bankruptcy) and it's part of the reason the US government keeps trying to make people think of renewable energy as the next big thing despite the very poor environmental impact and low margin of economic value it can sustain on it's own.
this leads to the fiscal bubble of renewable energy being pushed as something we "need" for sustainability and as such, something we need to dump billions of inflation dollars into to prop it up and then branch the rest of our economy off of it
this is exactly how pre-2008 it was all about how everyone needs a house that is valued at 500K so that they can survive by selling it for 1M when they are 90 (government gains the ability to lock you down to one place and keep an eye on you for decades since you cant just up and move due to houses going from a place to live to a lifetime investment)
then the social media bubble post-2008 was all about how you cant live in the digital world without tying your personal communications, public communications, financial assets, and real world assets into one interconnected thing (governments gain the ability to tell you how to think by taking dissident personal speech and claiming it to be a public threat and attack your financial and real world assets)
in this manga you can see how various branches of the japanese government were (and are) using the economy as a political game and tool, as does the rest of the world's governments to extract political power out of dollars that don't mean anything other than the faith we have that they will still be used for something
our MC is exploiting her knowledge of everything that happened and knowing the economy is just a political game to these competing government branches to worm her way into a "keystone" who cant be displeased or their faction might be crushed in the political game after everything falls apart... giving herself a ton of monetary gains as a result of the "losing" faction needing to keep some semblance of political projection through a "healthy" economy (propped up by them dumping money into her to keep the failing assets from being exposed)
TLDR:
but to those who need/want money, that's all they see
@Rumor and @AlmondMagnum Good points, I forgot that the setting was already in an alternate history, thanks! Though I do wonder, for folks who have read the raws/original LN, does the alternate history play a larger role later in the series? So far it just seems to be a way for the author to incorporate "nobles/aristocrats" in a setting they wouldn't be able to if it was just straight IRL (and also avoid references to real life politicians/finance figures lol), but I'm wondering, do the changes to Japan's defeat in WWII influence anything else in the manga so far? Like, are relations with the US better or worse, did the Cold War last for longer or shorter (a lot of anime, like SPT layzner from which my icon comes, had the USSR hanging around till the 2000s lol), or so on?
I will profess to be no student of history nor be up to date on Japanese history or what kind of stuff went down on their history. I can only tell you what is said in the work that we both consume.
I read the official EN LN that has up to Vol.3 released. Vol.4 is... delayed until 2024. So contents of my blurb will contain details that are only up to Vol.3 (in context, we are still not even half-way out of Vol.1 in terms of content for released chapters. In Fact, we are 66 pages + 5 lines on the 67th page in terms of content on the LN. ).
I will also point out that going into detail on these things will reveal key story points that will be relevant to future content not yet released. This means that it will contain spoilers.
I also will have to point out that this world is, once again, really structured after an Otome Game. The nobles/aristocrats being a thing in this world is (according to Runa-chan's mussings/thoughts on the Game itself) is just an excuse from the devs to have a blonde villainess that is worth being that said characteristic. It just so happen that (presumably) someone in the dev team wanted it to make sense and not just "yes, this character has blonde hair.... what? yes, they are also japanese."
With that said, if you're still up for it, I'll try to list it out in a spoiler (disclaimer: I am only drawing from memory. To really get 100% correct information will require me to read all 3 volumes. Also, some details are still glossed over )
it all comes to a point for Japan in which they announced an early surrender during the pacific war . Since this is not an unconditional surrender as is the fact in the "real world", the "zaibatsu" is one of the things that survived the loss of the war. This explains as to why Runa belongs to the Keikian house. As an aside, due to their continued survival, their weaknesses were exposed and it lead to a collapse of several zaibatsus and the engorging on the dead ones by the ones who survived. This sets up future characters like Teia-kun, a love interest in the Game. It was off-handedly mentioned that the allies failed normandy and that Germany fought to the bitter end. How this affected the world stage is not clear. However, this hard fought victory by the allies most likely influenced the US to still meddle with Japan's ability to field their own military force. This still lead to the JDSF.
Japan and the US had a close relationship between the two, with Japan also declaring War on the Axis powers when they surrendered. They sent aid (both civilian and military) on various incursions including the Gulf War, Manchurian War (The Korean War), and Vietnam. Due to the fact that Japan has not experienced the wrath of the Atomic Bomb, the Japanese people themselves has a different kind of self and worldview on things compared to their "Real World" counterparts. The Japanese people and Japan itself is an active and very active player in the world stage which they are "not afraid to spill their own blood to achieve outside goals" (paraphrasing it). In the context that this was pointed out, the Japanese has their own PMCs in operation. In the "Real World" Japan has a very insular and very pacifistic approach to things and is more likely to fold when put under pressure.
One of the key things is the establishment of a "Northern Japan" under Communist rule that is helped by the Soviet Union. This is seperate from the government that rules the rest of japan and is a point of contention. Due to this fact, there is a sizable population of Russians on Northern Japan and this is where Runa's russian blood came from. To make a long matter short; Runa's father got hooked into a honeytrap set up by the Soviet's Intelligence Agency using a woman of Romanov blood. This also connected Runa's father into various schemes that got exposed. This lead to Runa's parent's deaths. This explains why Runa is basically not only a "Lady" in terms of Japanese heritage but also practically "Royalty" in Russia. This will be key later on but it is outside of the purview that I am outlining.
At the end of it... despite several "differences" on certain things, overall the things pertaining to Japanese things still mostly follow the "Real World's History". This can be explained by the fact that the devs of the Otome Game was too lazy/just didn't want to add "useless background information" that is entirely not needed to the game make it into a complete alternate history. This also gives a sense of familiarity to players of the Otome Game that doesn't need for them to read special lore to understand why certain things are done if it is a complete alternate world. In fact, you can even say that it is Runa's very own actions that are causing these deviations and shifts in the storyline.
All of these business things is something that Runa takes up (alongside other things) on her own that is causing this shift in the storyline. Remember that the "proper storyline" doesn't actually start until she hits high school. The storyline she is basically threading on is still "real world history".
Am I forgetting things? most likely. I'm not really too eager to pick at them at this point. This has gone on for far too long, no?
Also @Manchura , while you are saying the truth in terms of the circumstances surrounding the actions of factions around her, she is at the core a good person that (in this point in time) would like to save as many people as possible from the negative effects of the crisis being averted through her actions. I feel like you are equating her to a merciless manipulator from your words when it is far from the truth. It is mostly really the circumstances that surround her that makes her act in such ways while keeping her goals in the situation and life in mind. She actually does have a plan to pay off the "debt" she owes for the special loans given to her from the BOJ. It involves the dotCom bubble.
Your words also gives quite the conspiracy theorist vibe that it tickles me in a funny way. While looking at it it does make sense, it just gives off that observer's humor that one has when seeing someone rant wildly about a conspiracy they researched and is clearly passionate about/convinced is true.
I mean no disrespect of course. Considering I do not know if it is true or not, I can't say one way or another if your words are true or just one's interpretation of the events in the past. I err at the side of caution and just leave it at that.
Whew. I typed out quite a bit. Can't help but do so tho lol.
well, bubbles of profit also mean bubbles of government influence under a fiscal bubble system, and google IS a social media company, as their entire model is to tie you to the rest of society through media, even though they are a search engine you are connected to the wider society through the media you find on google, and currently the US is feeling the burst of that bubble (the banks in charge of silicon valley's money have all filed for bankruptcy) and it's part of the reason the US government keeps trying to make people think of renewable energy as the next big thing despite the very poor environmental impact and low margin of economic value it can sustain on it's own.
this leads to the fiscal bubble of renewable energy being pushed as something we "need" for sustainability and as such, something we need to dump billions of inflation dollars into to prop it up and then branch the rest of our economy off of it
this is exactly how pre-2008 it was all about how everyone needs a house that is valued at 500K so that they can survive by selling it for 1M when they are 90 (government gains the ability to lock you down to one place and keep an eye on you for decades since you cant just up and move due to houses going from a place to live to a lifetime investment)
then the social media bubble post-2008 was all about how you cant live in the digital world without tying your personal communications, public communications, financial assets, and real world assets into one interconnected thing (governments gain the ability to tell you how to think by taking dissident personal speech and claiming it to be a public threat and attack your financial and real world assets)
in this manga you can see how various branches of the japanese government were (and are) using the economy as a political game and tool, as does the rest of the world's governments to extract political power out of dollars that don't mean anything other than the faith we have that they will still be used for something
our MC is exploiting her knowledge of everything that happened and knowing the economy is just a political game to these competing government branches to worm her way into a "keystone" who cant be displeased or their faction might be crushed in the political game after everything falls apart... giving herself a ton of monetary gains as a result of the "losing" faction needing to keep some semblance of political projection through a "healthy" economy (propped up by them dumping money into her to keep the failing assets from being exposed)
TLDR:
but to those who need/want money, that's all they see
I am going to have to disagree on some of your assessments. Albeit I do agree partly with some of it.
Google isn't a social media company, they are an ad company. And the bubble isn't a social media bubble but tech bubble as many tech company stocks skyrocketed. The social media ones are just the most inflated ones in the batch because they will never be able to monetize it
The reason why US is pushing renewable energy is mostly because we fell behind most of the world. On top of that a lot of manufacturing has went to countries like China. US is worried about losing to China and over dependence on China. This isn't just renewables but computer chips and etc. The real boon is going to be converting the 3rd world to renewable energy short to medium term but in about a few decades it will turn into a race to the bottom with no profit. That is cause the materials are common enough so once a country gets enough expertise anyone can build their own. With electric rates falling below 1 cent and distributed generation letting people generate their own electricity. The writing is on the wall
The housing bubble was mostly due to real estate being seen as safe investment. Due to the dot com crash people flooded there. Add to decoupling of investment banking laws, banks just had too much money and needed outlets to dump it in bulk. There was no grand conspiracy to keep people in houses cause most of those houses weren't to live in but investments
Governments also don't gain from social media at all. The opposite. Before when you had mostly major media outlets, the government could easily get a few people onboard. With social media it becomes impossible to control the narrative. Even the major media outlets become harder to control because they risk losing audience to social media if they don't pamper to their bases.
I will profess to be no student of history nor be up to date on Japanese history or what kind of stuff went down on their history. I can only tell you what is said in the work that we both consume.
I read the official EN LN that has up to Vol.3 released. Vol.4 is... delayed until 2024. So contents of my blurb will contain details that are only up to Vol.3 (in context, we are still not even half-way out of Vol.1 in terms of content for released chapters. In Fact, we are 66 pages + 5 lines on the 67th page in terms of content on the LN. ).
I will also point out that going into detail on these things will reveal key story points that will be relevant to future content not yet released. This means that it will contain spoilers.
I also will have to point out that this world is, once again, really structured after an Otome Game. The nobles/aristocrats being a thing in this world is (according to Runa-chan's mussings/thoughts on the Game itself) is just an excuse from the devs to have a blonde villainess that is worth being that said characteristic. It just so happen that (presumably) someone in the dev team wanted it to make sense and not just "yes, this character has blonde hair.... what? yes, they are also japanese."
With that said, if you're still up for it, I'll try to list it out in a spoiler (disclaimer: I am only drawing from memory. To really get 100% correct information will require me to read all 3 volumes. Also, some details are still glossed over )
it all comes to a point for Japan in which they announced an early surrender during the pacific war . Since this is not an unconditional surrender as is the fact in the "real world", the "zaibatsu" is one of the things that survived the loss of the war. This explains as to why Runa belongs to the Keikian house. As an aside, due to their continued survival, their weaknesses were exposed and it lead to a collapse of several zaibatsus and the engorging on the dead ones by the ones who survived. This sets up future characters like Teia-kun, a love interest in the Game. It was off-handedly mentioned that the allies failed normandy and that Germany fought to the bitter end. How this affected the world stage is not clear. However, this hard fought victory by the allies most likely influenced the US to still meddle with Japan's ability to field their own military force. This still lead to the JDSF.
Japan and the US had a close relationship between the two, with Japan also declaring War on the Axis powers when they surrendered. They sent aid (both civilian and military) on various incursions including the Gulf War, Manchurian War (The Korean War), and Vietnam. Due to the fact that Japan has not experienced the wrath of the Atomic Bomb, the Japanese people themselves has a different kind of self and worldview on things compared to their "Real World" counterparts. The Japanese people and Japan itself is an active and very active player in the world stage which they are "not afraid to spill their own blood to achieve outside goals" (paraphrasing it). In the context that this was pointed out, the Japanese has their own PMCs in operation. In the "Real World" Japan has a very insular and very pacifistic approach to things and is more likely to fold when put under pressure.
One of the key things is the establishment of a "Northern Japan" under Communist rule that is helped by the Soviet Union. This is seperate from the government that rules the rest of japan and is a point of contention. Due to this fact, there is a sizable population of Russians on Northern Japan and this is where Runa's russian blood came from. To make a long matter short; Runa's father got hooked into a honeytrap set up by the Soviet's Intelligence Agency using a woman of Romanov blood. This also connected Runa's father into various schemes that got exposed. This lead to Runa's parent's deaths. This explains why Runa is basically not only a "Lady" in terms of Japanese heritage but also practically "Royalty" in Russia. This will be key later on but it is outside of the purview that I am outlining.
At the end of it... despite several "differences" on certain things, overall the things pertaining to Japanese things still mostly follow the "Real World's History". This can be explained by the fact that the devs of the Otome Game was too lazy/just didn't want to add "useless background information" that is entirely not needed to the game make it into a complete alternate history. This also gives a sense of familiarity to players of the Otome Game that doesn't need for them to read special lore to understand why certain things are done if it is a complete alternate world. In fact, you can even say that it is Runa's very own actions that are causing these deviations and shifts in the storyline.
All of these business things is something that Runa takes up (alongside other things) on her own that is causing this shift in the storyline. Remember that the "proper storyline" doesn't actually start until she hits high school. The storyline she is basically threading on is still "real world history".
Am I forgetting things? most likely. I'm not really too eager to pick at them at this point. This has gone on for far too long, no?
Also @Manchura , while you are saying the truth in terms of the circumstances surrounding the actions of factions around her, she is at the core a good person that (in this point in time) would like to save as many people as possible from the negative effects of the crisis being averted through her actions. I feel like you are equating her to a merciless manipulator from your words when it is far from the truth. It is mostly really the circumstances that surround her that makes her act in such ways while keeping her goals in the situation and life in mind. She actually does have a plan to pay off the "debt" she owes for the special loans given to her from the BOJ. It involves the dotCom bubble.
Your words also gives quite the conspiracy theorist vibe that it tickles me in a funny way. While looking at it it does make sense, it just gives off that observer's humor that one has when seeing someone rant wildly about a conspiracy they researched and is clearly passionate about/convinced is true.
I mean no disrespect of course. Considering I do not know if it is true or not, I can't say one way or another if your words are true or just one's interpretation of the events in the past. I err at the side of caution and just leave it at that.
Whew. I typed out quite a bit. Can't help but do so tho lol.
Thank you so much, that's really interesting. It seems like the alternate history setting will end up becoming a major plot point later on. I'm better with history than finance so thats good for me lol.
