To: TWICK who wrote (10722 ) 2/24/2002 4:26:51 PM From: Mad2 Read Replies (1) | Respond to of 19219 If you destroy something, what makes it come right back ? Japan's bubble was decimated. Now 10+ years later and there is still no "Big" rally. Still no recovery in sight. They're all sitting on tons of cash, and gold, but they're not buying stocks. Why is that ? Did they lose faith in the markets, in their banks, and big companies ? Are they afraid to lose what they know is safe for now ? And we, over here, are still telling ourselfs that things are not like it is in Japan. Of course not. This recession will be over this year. Bullshit. Don't compare japan with USA (yet), problem with Japan leading into 1989-1990 peak was; 1)too many years of uninterupted growth 2)Real Estate bubble where property was bought on speculation 3)Equity bubble same as RE 4)Crossownership of Equity between banks and their customers 5)Excess capacity and Inability of banking system to deal with bad loans. Result is the sick are on life support and spreading their desease to the healthy. Also they have a big problem with deflation and govt debit at 160% of GDP. Now Japanese consumer is afraid to spend because of shitty rate of return, fear that he needs to save more to survive in future and because prices are comming down (weakening of Yen may shoot that), however this dismal rate of return (in country where savings rate is >15%) is creating lack of confidence in Yen. This could create a currency crisis within whole region as other Asean economies seek to preserve their "competitiveness" with Japan. This is helping spur gold demand. Japanese are desperate and talking about inflation not being so bad (compared to deflation and conrtaction of economy). Very dangerous, as if inflation takes hold in Japan it will ultimatly be reflected in lending rate. with japans huge debit, ( i think debit service is up to 36% of govt expenditures), currency could eventually implode. Japan is exact opposite of USA on finance side. In the USA govt has been retiring debit (net savings), however in Japan, the individual saves and govt goes into hock. m