If green Japanese entrepreneurs believe that you shouldn't take a risk with someone who's failed and thus can't learn from them and are more likely to fail themselves, isn't that their own fault?

Regardless of this, Japan's economy will begin to recover when the government stops interfering with interest rates.

If the market set rates, marginal businesses would fail, making room for new companies.

And savers would have more incentive to save, making more capital available for businesses that stand a better chance of generating returns that justify the higher rates.

More viable business mean more capital returned to investors and more capital for investment.

These low rates are really a subsidy for mediocre investments. And we all pay for this subsidy through inflation and dumb idea bubbles.