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The silver lining of Japan’s earthquake

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The result of all the new wealth creation will be money in the pockets of Japanese to buy global goods and services.

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This newly created demand will surely attract the piles of cash out there looking for investment opportunities, from global private equity pools to American banks and China’s sovereign funds. At a dinner in Hong Kong a couple of weeks ago, one of Asia’s largest investors complained to me about the dearth of good deals in Asia outside of China. China itself has more surplus funds than it knows what to do with. Direct foreign investment in overly indebted Japan’s reconstruction by China would more closely integrate the second- and third-largest economies in the world in a way that political reconciliation has failed to do under normal circumstances.

Japan set for green recovery

The greatest opportunities lie in building the world’s most advanced, smart, energy-efficient cities and infrastructure out of the rubble. Japan is not Haiti or even the United States. Despite its long stagnation, Japan has retained an engineering prowess second to none.

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