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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (90960)	9/30/2007 6:47:44 PM
From: Elroy Jetson	Read Replies (2) \| Respond to of 306849

Japan followed the Monetarist advice of the US Fed following their 1990 collapse - and we can see what a tremendous success that has been. In essence Japan has remained mired in an endless economic twilight zone. Charles Rist and Joseph Schumpeter would have advised Japan to let the economic collapse to occur, sending many banks, businesses, and individuals into bankruptcy. After this period of pain, Japan's economy would have rebounded with great resilience. Instead Japan followed the Monetarist policy of make-believe. Let's make believe the capital is still there and intact. We can stimulate debt creation by lowering interest rates to zero, which will make up for the lost capital. I don't think this game of make-believe worked very well. And it won't work any better here in the US. .