Get moving, Japan

International financial officials have been meeting in Tokyo with a sense of urgency that was lacking for most of this decade as Japan refused to deal with its banking crisis. Now Japan has promised prompt action, and has earmarked money to do the job. What is unclear is whether the Japanese authorities are able to act decisively.

Action is essential because Japan is in the midst of a severe credit crunch as shaky banks try to avoid new losses by avoiding almost all loans. That has put a stranglehold on the economy, deepening Japan's recession and making the bad loan problem even more severe.

It is hard to imagine a worse time for Japan to be in recession. The problems of developing countries in Asia remain severe, and are hurting others.

Asian countries, unable to afford things have slashed their imports, and American exports are falling. The developing countries, confronted with their own weak banks and debt-ridden companies, will have a hard enough time recovering even if Japan does get moving and resume buying their products. Without a Japanese recovery, it is easy to understand why World Bank officials have started talking about Asian depression.

Intervention by Tokyo and Washington support the yen set of rallies in financial markets around the world last week, but they quickly faded as investors looked for action, not words. Japan needs to determine which banks are insolvent and close them, while protecting depositors.

-- The New York Times