Quote:
Originally Posted by wjxxx
There will be "lost decade" - 10 years of stagnation and recession.
It`s kinda funny how it`s similar to Japan in 90s. Similar real estate bubble, similar crash and similar "solution" - very low interest rates and stimulus package. Japanese public debt is 170% GDP now  |
Well, to be fair to the Obama administration (and preceding Bush admin), they are more aggressive re rate cuts and addressing the "zombie" bank issue. Japan was in a state of shock and denial before even trying to address the zombie bank assets. That probably had a lot to do with the duration of the Japanese asset deflation ongoing crash (it still hasn't stopped). Nikkei is now around 20% of its record in the 80s (yes, nearly 20 years ago).