00:01 Early morning in Shinjuko Chuo Park, central Tokyo.
00:06 A homeless man sleeps on the park's bandstand.
00:10 Scenes like this are increasingly common in the Japanese capital.
00:16 Situated in the heart of the city's bustling financial district, the park has become a magnet for hundreds of homeless men and women.
00:25 The country's economic crisis has hit men over 50 the hardest, but since the Japanese only get a pension after the age of 65, many are left to their own devices.
00:35 Mr. Sugawara is 66 years old. Unemployment and debt drove him to the streets nearly ten years ago. He has been unable to get off them ever since.
00:48 UPSOUND: (Japanese) Mr. Sugawara, Homeless Man
"I used to be a carpenter. I was banging nails, going up on the roof and...I did everything."
01:01 These days stories like Sugawara's are not unusual.
01:05 UPSOUND: (Japanese) Mr. Sugawara, Homeless Man
"There are no jobs available at all these days because of this recession. There are too many people in the construction industry. It's just too many for too few jobs."
01:16 In downtown Tokyo it is hard to see signs of what some have described as a crashing economy.
01:25 The city lights still shine brightly.
01:29 But economists are warning of deflation, and the nation's banks are struggling to stay afloat with over $521 billion US dollars in bad debt.
01:39 And worse is yet to come.
01:42 Record lows in the Tokyo Stock exchange have sent shock waves across the world's financial markets.
01:49 The Nikkei has suffered months of losses - recently touching a 16-year low.
01:58 After a decade of no-growth, any hopes of a turn for the better are fast diminishing.
02:06 The government has stepped in to try and halt the falls, buying shares to prop up the market. But the move is seen as nothing more than a face saving exercise and most feel it is already doomed to failure.
02:22 The problem is far from over.
02:27 Economist Noriko Hama is research director at the Mitsubishi Institute
02:33 UPSOUND: (English) Noriko Hama, Economist
"The Japanese economy in that respect is if you like, like the ship Titanic. It is a huge ship. A lot of money has gone in to its construction so it is pretty stable. So people on top of the decks, you know, are still sort of drinking champagne and having a great day but people at the bottom of the ship are really about to drown, and sink, and to die. But because the ship is such a large one and it is such a sophisticated one it really takes a while before everybody starts to feel the pain. I think we are getting there. The ship is steadily tilting."
03:12 (UPSOUND: Music)
03:15 For now the country's youth continue to spend. It is their parents who are feeling the pressure as companies restructure, and downsize.
03:26 Money is slowly drying up.
03:28 Luxuries such as entertainment could be the first to suffer if the threatened deflation does come in to play, bringing with it a fast downward spiral.
03:38 UPSOUND: (Japanese) Mizusaki Rui, Student
"I don't really care about the recession. It's none of my business because it doesn't affect me at all. I don't really feel the recession."
03:46 UPSOUND: (Japanese) Hiroko Fukuda, Housewife
"I'm worried about my husband's job. Some of my friends lost their jobs because of so-called 'restructuring' and I heard that they are now voluntarily working for temples just to get some small money."
04:01 UPSOUND: (Japanese) Minehiro Kawai, Businessman
"I think the economy is very bad because it was a common sense to have a pay rise every year. I took it for granted, but it's not true anymore. Restructuring is something I have to be aware of all the time because it has happened to people around me."
04:20 UPSOUND: (English) Noriko Hama, Economist
"I think it will, well I suppose the short answer is that it is going to get much worse before it starts to get better. How much worse for how long? Well I think we are looking for a really very rapid deteriorating in the situation in the coming two to three years. Well I suppose, to put it in a very simple nutshell, five years of more pain and then a gradual sort of improvement in the situation."
04:53 Japanese Prime Minister Yoshiro Mori with George W Bush - a meeting of the world's 1st and 2nd largest economies.
05:05 Wall Street is feeling the heat and both men are facing enormous economic problems as a deepening recession is beginning to loom.
05:15 UPSOUND: (Japanese) Japanese Prime Minister Yoshiro Mori
"I'd like to explain various measures my government has taken for a fully sustainable economic growth. And I would like to see the United States take appropriate macro economic measures to counter the US economic slowdown."
05:40 But with plunging approval ratings, Mori is expected to resign imminently.
05:48 Tokyo Fish market - centre for the country's multi-million dollar fishing industry.
05:56 It acts as a barometer for the health of the economy.
06:00 Buyers travel here from throughout the world to buy delicacies such as bluefin tuna.
06:08 Though busy, profits here are down.
06:14 The decade-long recession that has held Japan in its grip has avoided the market until now. The demand for high quality fish has guaranteed its survival through difficult times.
06:26 But many are now struggling to stay alive.
06:31 Fewer are buying, and all here agree they have never known such a difficult time.
06:42 UPSOUND: (Japanese) Fisherman, Voxpop
"We just can't sell expensive fish like we used to."
06:47 UPSOUND: (Japanese) Fisherman, Voxpop
"People don't spend anymore. They just don't buy! When the economy was booming, people were willing to buy anything good such as good fish for sushi even though they were expensive."
06:59 UPSOUND: (Japanese) Fisherman, Voxpop
"In the recession the food industry becomes the first victim because people buy the cheapest food possible. We are all feeling it."
07:12 Fishermen are pessimistic about the next twelve months, and most are already preparing themselves for even harder times despite government help.
07:22 A slight cheer was felt after banks effectively lowered interest rates to zero in an attempt to spur growth.
07:31 But the good mood was short lived.
07:35 Some believe recovery will not come about unless commercial banks give Japan a clean slate by wiping out their bad loans.
07:46 For now the government is performing a difficult balancing act between keeping national consumer confidence buoyant and pacifying growing international criticism.
07:59 For Mr. Sugawara any hope of returning to work has fast disappeared.
08:04 UPSOUND: (Japanese) Mr. Sugawara, Homeless Man
"I'm worried about my health the most living in a tent here. I want to live a long time. When you die, that's it. That's the end of the story. I don't want that yet. I try and stay healthy by doing exercise in my own way."
08:26 The homeless of Shinjuku Chuo Park are left alone by authorities.
08:34 What would have once been unheard of in Japanese culture is now an everyday sight.
08:42 This is some of Tokyo's newest housing.
08:47 Japan has long prided itself on keeping jobless numbers far below the West.
08:52 But it is now facing unemployment rates of 4.8 percent and rising.
08:59 These are dark times in the Land of the Rising Sun, and they look set to continue.
00:06 A homeless man sleeps on the park's bandstand.
00:10 Scenes like this are increasingly common in the Japanese capital.
00:16 Situated in the heart of the city's bustling financial district, the park has become a magnet for hundreds of homeless men and women.
00:25 The country's economic crisis has hit men over 50 the hardest, but since the Japanese only get a pension after the age of 65, many are left to their own devices.
00:35 Mr. Sugawara is 66 years old. Unemployment and debt drove him to the streets nearly ten years ago. He has been unable to get off them ever since.
00:48 UPSOUND: (Japanese) Mr. Sugawara, Homeless Man
"I used to be a carpenter. I was banging nails, going up on the roof and...I did everything."
01:01 These days stories like Sugawara's are not unusual.
01:05 UPSOUND: (Japanese) Mr. Sugawara, Homeless Man
"There are no jobs available at all these days because of this recession. There are too many people in the construction industry. It's just too many for too few jobs."
01:16 In downtown Tokyo it is hard to see signs of what some have described as a crashing economy.
01:25 The city lights still shine brightly.
01:29 But economists are warning of deflation, and the nation's banks are struggling to stay afloat with over $521 billion US dollars in bad debt.
01:39 And worse is yet to come.
01:42 Record lows in the Tokyo Stock exchange have sent shock waves across the world's financial markets.
01:49 The Nikkei has suffered months of losses - recently touching a 16-year low.
01:58 After a decade of no-growth, any hopes of a turn for the better are fast diminishing.
02:06 The government has stepped in to try and halt the falls, buying shares to prop up the market. But the move is seen as nothing more than a face saving exercise and most feel it is already doomed to failure.
02:22 The problem is far from over.
02:27 Economist Noriko Hama is research director at the Mitsubishi Institute
02:33 UPSOUND: (English) Noriko Hama, Economist
"The Japanese economy in that respect is if you like, like the ship Titanic. It is a huge ship. A lot of money has gone in to its construction so it is pretty stable. So people on top of the decks, you know, are still sort of drinking champagne and having a great day but people at the bottom of the ship are really about to drown, and sink, and to die. But because the ship is such a large one and it is such a sophisticated one it really takes a while before everybody starts to feel the pain. I think we are getting there. The ship is steadily tilting."
03:12 (UPSOUND: Music)
03:15 For now the country's youth continue to spend. It is their parents who are feeling the pressure as companies restructure, and downsize.
03:26 Money is slowly drying up.
03:28 Luxuries such as entertainment could be the first to suffer if the threatened deflation does come in to play, bringing with it a fast downward spiral.
03:38 UPSOUND: (Japanese) Mizusaki Rui, Student
"I don't really care about the recession. It's none of my business because it doesn't affect me at all. I don't really feel the recession."
03:46 UPSOUND: (Japanese) Hiroko Fukuda, Housewife
"I'm worried about my husband's job. Some of my friends lost their jobs because of so-called 'restructuring' and I heard that they are now voluntarily working for temples just to get some small money."
04:01 UPSOUND: (Japanese) Minehiro Kawai, Businessman
"I think the economy is very bad because it was a common sense to have a pay rise every year. I took it for granted, but it's not true anymore. Restructuring is something I have to be aware of all the time because it has happened to people around me."
04:20 UPSOUND: (English) Noriko Hama, Economist
"I think it will, well I suppose the short answer is that it is going to get much worse before it starts to get better. How much worse for how long? Well I think we are looking for a really very rapid deteriorating in the situation in the coming two to three years. Well I suppose, to put it in a very simple nutshell, five years of more pain and then a gradual sort of improvement in the situation."
04:53 Japanese Prime Minister Yoshiro Mori with George W Bush - a meeting of the world's 1st and 2nd largest economies.
05:05 Wall Street is feeling the heat and both men are facing enormous economic problems as a deepening recession is beginning to loom.
05:15 UPSOUND: (Japanese) Japanese Prime Minister Yoshiro Mori
"I'd like to explain various measures my government has taken for a fully sustainable economic growth. And I would like to see the United States take appropriate macro economic measures to counter the US economic slowdown."
05:40 But with plunging approval ratings, Mori is expected to resign imminently.
05:48 Tokyo Fish market - centre for the country's multi-million dollar fishing industry.
05:56 It acts as a barometer for the health of the economy.
06:00 Buyers travel here from throughout the world to buy delicacies such as bluefin tuna.
06:08 Though busy, profits here are down.
06:14 The decade-long recession that has held Japan in its grip has avoided the market until now. The demand for high quality fish has guaranteed its survival through difficult times.
06:26 But many are now struggling to stay alive.
06:31 Fewer are buying, and all here agree they have never known such a difficult time.
06:42 UPSOUND: (Japanese) Fisherman, Voxpop
"We just can't sell expensive fish like we used to."
06:47 UPSOUND: (Japanese) Fisherman, Voxpop
"People don't spend anymore. They just don't buy! When the economy was booming, people were willing to buy anything good such as good fish for sushi even though they were expensive."
06:59 UPSOUND: (Japanese) Fisherman, Voxpop
"In the recession the food industry becomes the first victim because people buy the cheapest food possible. We are all feeling it."
07:12 Fishermen are pessimistic about the next twelve months, and most are already preparing themselves for even harder times despite government help.
07:22 A slight cheer was felt after banks effectively lowered interest rates to zero in an attempt to spur growth.
07:31 But the good mood was short lived.
07:35 Some believe recovery will not come about unless commercial banks give Japan a clean slate by wiping out their bad loans.
07:46 For now the government is performing a difficult balancing act between keeping national consumer confidence buoyant and pacifying growing international criticism.
07:59 For Mr. Sugawara any hope of returning to work has fast disappeared.
08:04 UPSOUND: (Japanese) Mr. Sugawara, Homeless Man
"I'm worried about my health the most living in a tent here. I want to live a long time. When you die, that's it. That's the end of the story. I don't want that yet. I try and stay healthy by doing exercise in my own way."
08:26 The homeless of Shinjuku Chuo Park are left alone by authorities.
08:34 What would have once been unheard of in Japanese culture is now an everyday sight.
08:42 This is some of Tokyo's newest housing.
08:47 Japan has long prided itself on keeping jobless numbers far below the West.
08:52 But it is now facing unemployment rates of 4.8 percent and rising.
08:59 These are dark times in the Land of the Rising Sun, and they look set to continue.