My former business partner was there in person during the japanese collapse. It was a lot WORSE than 2% YoY. At the onset, it was a blood bath. 40 million dollar studio condo’s in Tokyo…Went to hell over night. There still vacant today.

Even at 0% interest rates, the japanese wont even consider taking out a loan, they all got burned and the pain from that is still very evident in their financial culture.

Also, their culture accepts and encourages savings. We on the other hand, since 911, have this “Who cares ? we need to live for today” mentality, spending like theres no tomorrow…..Well, guess what ? …Today is tomorrow.. and were still here…ARM’s are the root word for ARMageddon. The price for this free ride of irresponsible lifestyle and largesse is being tallied up, the metaphorical invoices will go out to the unfortunate, beginning in 4th qtr 06 and 07 will be bloody, but not as bloody as 08.

Preserve your credit, conserve your cash, nirvana is close for savvy investors.