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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (1936)	2/16/2001 9:45:11 PM
From: westpacific	Read Replies (1) \| Respond to of 74559

From a friend on SI - Japan vs US From: Stock Operator Friday, Feb 16, 2001 6:18 PM View Replies (1) \| Respond to of 49016 Dude, the Great Depression, the 80's Japanese bubble, and the US Bubble of 95-2000 were created by one thing and one thing alone: Easy CREDIT, which led to highly leveraged consumers and corporations, which created MalInvestment and economic imbalances, which creates a huge deleveraging process. The difference between Japan and the U.S. is that they are net creditors and we are debtors, which ultimately means that the deleveraging process will come at the expense of inflation and the Dollar. If the Fed wants to save the dollar (which it doesn't appear that they care about), they will have to behold strict monetary pollicy at the expense of the US consumer - this will cause a sharper pain but ultimately get us out of the inevitable deleveraging a lot faster; Volker would have done it, but Greenspam is another story.