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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?


To: ahhaha who wrote (2063)4/20/2001 8:53:32 AM
From: ElsewhereRead Replies (1) | Respond to of 24758
 
And consider, they're running out of real estate just like the BOJ. How bearish is that? Bet you haven't considered that possibility. It's called pushing on a string and it isn't supposed to happen in demand oriented economies. It's also referred to as a "liquidity trap", more and more money doesn't get things going much.

Stephen Roach agrees with your scenario:

MS GEF Apr 20, 2001
morganstanley.com

History is not exactly replete with examples of post-bubble shakeouts. America in the 1930s and Japan in the 1990s painfully come to mind. One of the most salient lessons from both of those earlier episodes is that the aftershocks are long and painful -- and, unfortunately, not tempered by lower interest rates. Try as they might, the authorities usually end up "pushing on a string." But that doesn’t stop them from trying -- and that’s exactly what I sense the Fed is now beginning to do.