Edward J. Lincoln

Tokyo's economic sluggishness is souring life at home and setting off alarms abroad. Scandal after scandal has revealed shocking malfeasance: unethical banking practices, illegal deals between financial institutions and politicians, and the strong-arm tactics of organized crime. Moreover, Japan's financial sector is swamped by a mind-boggling array of bad debts and underfunded pension liabilities, amounting to as much as $1.5 trillion. Tokyo promises economic stimulus and deregulation, but the results will disappoint. Worse yet, Japan will be reluctant to help bail out its Southeast Asian neighbors and will prove a weak international partner for America.