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October 17, 2008

Kenichi Ohmae's Interview at Bloomberg

Kenichi Ohmae’s Interview at Bloomberg

On October 17th 2008, in an interview on Bloomberg TV, Kenichi Ohmae gave his thoughts on the global credit crisis.


Siyen Ma, a Kenichi Ohmae Graduate School of Business MBA in Globalization professor, called for the interview after reading an article by Dr. Ohmae in the Japan Times (dated October 2nd 2008). The article entitled "What Is Needed to Make the US Financial Bailout Plan a Success" advocated that the US government seek help from the rest of the world by setting up an international credit line of around 5 trillion dollars. Mr. Ma, the Head of Risk Management for Bloomberg in Japan, was eager for Dr. Ohmae's opinions to be accessed by a global audience and so facilitated the interview, filmed at the Bloomberg studios in Tokyo.


In the interview, Dr. Ohmae detailed the condition of the U.S banking system and gave his opinion on the risks inherent in the government's financial rescue plan. Firstly he asserted that the US government is confusing psychological problems with physical problems. He said that liquidity is necessary in phase 1 of the rescue plan, in order that people can calm down and feel safe before moving onto stage 2. Dr. Ohmae went on to outline the steps necessary to tackle the financial crisis and suggested that ultimately the US could be left with 3 mega banks. He later addressed how Japanese banks could assist in the crisis by becoming involved in global coordination activities.


As well as appearing on Bloomberg TV, the interview features on the top page of Bloomberg screens worldwide, which is used by 300,000 market professionals and has around 60 million monthly hits.


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