THE PRAGMATIC CAPITALIST » » THE U.S. CREDIT CRISIS: JAPAN ON STEROIDS?

THE U.S. CREDIT CRISIS: JAPAN ON STEROIDS?

25 June 2009 by TPC 3 Comments

The U.S. credit crisis has some striking similarities to the Japanese credit crisis of the 90’s. The one glaring difference is that the U.S. appears to be doing everything at mach speed:

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3 Comments »

Purple Teeth said:

So what did Japan do next? It’s like the last page of the fairy tale is missing from the book. Don’t leave us hanging!

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# 25 June 2009 at 12:14 PM

TPC (author) said:

They implemented quantitative easing, rates remained low, deflation persisted, debt wasn’t paid off, consumers continued to save, house prices continued to decline and the Nikkei trended down to sideways for another 9 years. Of course, there were huge rallies along the way, but the long-term fundamentals remained very poor and the government and BOJ actions accomplished little beside fend off all out depression.

Sound famiilar?