Message to WTSherman,
Message 15445518
Hi WTSherman,
I agree with your statements, verbatim. My first and only boss was Japanese, a Board level person out of the Matsushita organization.
This is in fact what NY Times (my proxy for popular press) would also agree with. Many Japanese in positions of authority should be able to see that what you say is true, as they are not folks (singly or collectively) who are slow on the uptake.
My base assumption is that "the Japanese are not stupid".
Now comes the difficulty ...
<<Japan blew up, and regardless of the reasons (could very well be because of the bubble), has not yet been put back together yet.
Concerns:
(a) Relationship between economic disease and bubble
(b) Inabilities of the Central Bank (why)
(c) Market capitalization
(d) Can it happen in the US?
(e) If so, for how long before revitalization?>>
To summarize the concerns in one question "what else can Japan try?" and the answer can not be "just copy the US system".
Central Banks are to operate in their own respective societies, using its policy tools to "look after the money" and thus enable the economics to work.
Here is an instance of a central bank, having all of the resources a powerful CB ought to have in the world, not able to do its job. Why?
More pertinently, why can the CB policies of the US not fail?
Most of my goodies in the basket, in all the various forms, are denominated in US$. I got some Yen debt, some Euro goodies. But, in the main, I am in Dollar assets (can not be helped as HK has a pegged/linked/fully US$ backed currency).
It would not comfort me to hear that the US CB and its economy can fail due to a bubble exploding, but all will "bounce back" quicker than Japan (i.e. I will be blown to bits, but can be sawn back together if the doctor is really good).
Chugs, Jay |
