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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: GST who wrote (75511)12/13/2006 11:58:47 AM
From: John Vosilla  Respond to of 110194
 
'Our problems took place at roughly that same time and on roughly the same scale in terms of bad loans (higher in Japan but not massively higher) -- but as one would logically expect, the results were the exact opposite in Japan from what happened in the US.'

Yes I think you and I are on to something you won't find spoken anywhere<g>

I do think this time out much higher interest rates and tight credit conditions like we had around 1990 if it occurred in a rapid fashion would be serious trouble and result in a cascading slide in now way overvalued assets that would be impossible to turn around from monetary or fiscal policy.. I do agree with our best buddies here some of the time. The world is not all black and white but has many different colors<g>



To: GST who wrote (75511)12/14/2006 2:57:55 AM
From: bart13  Read Replies (1) | Respond to of 110194
 

...bad loans (higher in Japan but not massively higher)...


The banks average capital ratios were, if memory serves, massively worse in Japan - something over 2.5x worse.

I haven't seen anything for years about either Japan's or the US bank average capital ratios. Seem anything yourself?