Financial Times FT.com

Government bail-outs: Politics outweigh economic sense

By Jonathan Soble

Published: September 8 2009 15:59 | Last updated: September 8 2009 15:59

A Japan Airlines plane
Weighed down by debt: Japan Airlines reported a record Y99bn net loss for the quarter to June and has large taxpayer guaranteed loans

When the US government embarked on a multi-billion-dollar rescue of General Motors and Chrysler early this year, the decision drew nods of approval in Japan – home to Detroit’s biggest carmaking rivals.

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