Japan underwent about 10 years of restructuring after the collapse of the bubble. When a significant number of companies suffered a massive blow from the global financial crisis and the Great East Japan Earthquake that erupted just as the economy was about to show a recovery trend, the government decided to put out the urgent fire by supplying indiscriminate liquidity to prevent the collapse of the real economy for the time being.

However, the result was a delay in restructuring, a failure to weed out zombie companies, and the subsequent arrival of the ‘Lost 30 Years.’ As a result of the government blindly continuing life-sustaining artificial respiration treatment through banks, the timing for economic restructuring was missed, resulting in only prolonging the ‘lost’ time.

Japan used unlimited free money for bailouts and it stalled their economy for 30 years because many unprofitable companies were draining resources.

Korea is working on providing the same relief but to almost twice the economic fire. This would be devastating for SK growth and prosperity. The US did something similar for banks in 2008 and has had no widespread recovery, just fattened wealth hoarders and a stock bubble detached from reality.

Bailouts don’t work.