This detailed examination of Japanese banking and investment activities in the United States offers a picture of both the causes of the recent growth of foreign investment activity and the consequences of this trend for American companies, households and government agencies. The author argues that multiple factors have shaped the growing roles played by Japanese banks in the US financial system and by Japanese investors in the US economy, but remains optimistic that this is not necessarily a cause for alarm. Among the causes of Japanese expansion discussed in the book are the rapid appreciation of the yen in international markets, Japan’s large trade surpluses with the US, the high personal savings rate of the Japanese, periodically depressed US stock prices and the low barriers to entry into most US markets. Also detailed are the consequences of possible reductions in Japanese financial activity, which could be felt in the US through higher domestic interest rates, a reduction in the creation of new jobs, rising unemployment, reduced availability of long-term capital, and a slackening in the growth of US output.