i believe the usa economy was real estate over the past so many years, by fund flow, employment, etc, whereas the japanese economy was most assurdly not real estate, except by corporate financing flow that ended up all over the world, given land restrictions and lack of transactions
in this sense, the japanese economy worked off what needed to be worked off, and moved on, as one would expect
it is not as if the banks could add to the economy at then state even if the lending capacity was still there
in the usa case, when the bad loans gets flushed, the knock-on effect will be (a) minus an economy, and as the real estate and monetary inflation had driven up the dollar cost, (b) jobless non-recovery, unless sharp currency devaluation resetting competitive cost, but that would bring on (c) high interest rate, etc round and round
the main difference between japan 1990 and usa 2006 is the fact that japan was and is a net creditor, and usa is a out and out debtor, at every level. |
