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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 (75611)12/14/2006 11:05:46 AM
From: SeaViewer  Read Replies (2) | Respond to of 110194
 
This time, it could be over a trillion. Feds is going to be busy monetizing.



To: GST who wrote (75611)12/14/2006 11:45:17 AM
From: bart13  Read Replies (1) | Respond to of 110194
 

Bad loans in Japan were on the order of 900 billion in US dollars at the time. Our S&Ls racked up about $500 billion -- we wrote our bad debts off our books and they did not. It took a few years to do it in the US from start to finish. Fifteen years later Japan is still not finished.


True, and I wasn't commenting on that.

What I was talking about is the big difference in capital ratios at the time - if memory serves, Japan was about 2.5x worse than the US.