from Wiktionary, Creative Commons Attribution/Share-Alike License
- n. Application of financial engineering techniques in Japanese financial markets since their deregulation in 1984.
- n. Speculative financial investments, using simple financial leverage as well as financial engineering, in Japanese financial markets since their deregulation in 1984.
One focus will be the company's actions around the 2000/01 fiscal year, when Japan switched to market-value accounting and when many companies were forced to come clean on losses from so-called "zaitech" investment schemes.
Companies routinely poured billions of yen into speculative trades - moves called "zaitech," or "financial techniques" - that turned sour when the bubble burst in 1990.
The stock-market bust in Japan was also far more lethal than in the United States because of cross-holding by companies of other companies 'shares (the zaitech craze, which was really just a fancy word for corporate gambling).
It was an enthusiastic investor in derivatives and other risky investments under Toshiro Shimoyama, president from 1984 to 1993, who told the Nikkei industrial daily newspaper in 1986: "When the main business is struggling, we need to earn through zaitech - though doing too much is no good."
Very Orwellian. zaitech ` Financial engineering in Japanese technology companies applied as a way of bolstering profits. '
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