The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: patron_anejo_por_favor who wrote (109333)	3/12/2008 3:29:12 PM
From: Hawkmoon	Read Replies (1) of 306849

This is precisely what the Japs did 1990-2000, and it's the main reason their downturn stretched out into the decades. I thought it was because the Japanese were unwilling to write off bad debt That doesn't seem to be the case in our situation.. I think we're facing more of a scenario where those bad debts will be written off over time.. It's just that doing it all at one time would be extremely disruptive to the overall economy. I think this was why we saw Bernanke pressuring Banks to forgive debt as the means to clean up their balance sheets. Bernanke seems to have some fair research on Japan's experience, so hopefully he's drawn some lessons from what they have gone through. I once read a good book on Japan, which I would recommend. Richard Koo's "Balance Sheet Recession". Not sure I agree with all of his ideas (being one of the "unwashed masses"), but it was very informative: japanreview.net Hawk

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