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To: Wyätt Gwyön who wrote (48999)2/16/2001 5:55:36 PM
From: bambs  Respond to of 77400
 
things are terrible in Japan....did you know that is currently a goal of the government there to get the suicide rate down to under 22,000 a year by the year 2010. boom to bust...drunken market lust...

bambs



To: Wyätt Gwyön who wrote (48999)2/16/2001 6:03:54 PM
From: Steve  Read Replies (3) | Respond to of 77400
 
Mucho, Please elucidate the similarities and the differences between the US today and Japan in the late 1980s. Also, show us how Japanese financial institutions in the 1980s differed from US financial institutions today. Please tell us what specific reforms the US accomplished during the late 1980s that makes comparisons between 1990 Japan and 2000 US so difficult.

As a bonus please show us how the Japanese paradox of thrift depresses output and holds stock prices down.

As a triple bonus please show us how the flight of cheap capital in Japan after the collapse caused a contraction in the rate of growth in the Japanese export sector.

Also, if you can answer this question correctly you will win my super bonus econ prize:

What single event or series of events contributed the most to creating the nearly decade long Great Depression:

A. The Federal Reserve raising short term interest rates.
B. The Stock Market Crash of 1929
C. Hoover's lack of action in proposing a fiscal stimulus.
D. The failure of the Bank of the United States (a private institution)

Food for thought:

Do the high profit margins and growth rates in software production justify a higher P/E than the historical P/E of the technology sector prior to the advent of firms e.g., Microsoft or Oracle?



To: Wyätt Gwyön who wrote (48999)2/16/2001 7:13:30 PM
From: Eric  Read Replies (2) | Respond to of 77400
 
MM

The problem in Japan is nobody is borrowing money. Their bank lending rate is less than 1%! Money there is practically free to use!

The 45 and up generations are saving like mad and that is where the bulk of savings are going. The young are spending a lot more but they don't have very much savings power.

The upshot.. they can't seem to get out of their recession, and they face some very serious problems going forward taking care of their older generations. Where is the growth in their economy? They are even more taxed than we are. Where is all the money going? If you look at their labor costs vs ours it is very telling.

It's funny that we thought they were the leaders of the financial world 20 years ago. The truth is much more telling. Japan is a paper tiger.

Eric