Hi WTSherman,
(1) Do you believe you can put together an equally eloquent explanation if you started off like so ...
"Japan got hit with a liquidity bubble of historic proportions ..." but without resorting to any cultural observations.
I believe I can, and will (crushed for time right now), and I believe it could happen in the US.
Bubbles, of most dimensions, are nothing new. The current US bubble is a sight to behold.
(2) Do you believe you can prescribe some course of action to the Japanese without telling them to change into Americans? Raise rates, lower rates, increase infrastructure spending, sell the emperor's palace, take in Chinese and Korean immigrants, what?
I believe due to the dimension of the Japanese bubble, the only solution is letting prices crash to a market clearing level, and nothingelse. Put in another way, it does not matter what the Japanese officialdom do, as long as they do not let the market seek its own gory level.
Now, if so, what does that imply for the Nasdaq/S&P/DJI.
As stated in earlier post, I do not want to be blown to bits (i.e. Nasdaq 1400, DJI 6k, S&P 1k) but comforted that the duration of staying in bits is short (i.e. 12 months instead of 15+ years), because US is culturally different than Japan.
The US bubble, if it is a bubble, is bigger, as the US likes to do things on a much grander scale.
Chugs, Jay |
