Originally posted by sh76
An article in Friday's Journal (can't find it online) speculated as to whether Japan's 2 decade economic malaise caused by enormous real estate and credit bubbled in the late 80s is the harbinger for the west at this point.
Of course, most of the article quoted optimists stretching to find inherent differences between Japan and the US, etc. But, frankly, the ...[text shortened]... es of economic stagnation, deflation and near zero interest rates or are we really different?
Maybe not be the same, but similar theme:
"Few nations in recent history have seen such a striking reversal of economic fortune as Japan. The original Asian success story, Japan rode one of the great speculative stock and property bubbles of all time in the 1980s to become the first Asian country to challenge the long dominance of the West.
But the bubbles popped in the late 1980s and early 1990s, and Japan fell into a slow but relentless decline that neither enormous budget deficits nor a flood of easy money has reversed.
"Japanese leaders at first denied the severity of their nation’s problems and then spent heavily on job-creating public works projects that only postponed painful but necessary structural changes
, economists say."
Deficit spending and public works. Sound familiar? Have you heard anyone recently proposing that the US take identical steps as a cure for our recession brought on by a property bubble? Krugman, say? Or Thomas Friedman?