I’ve always thought that Japan is viewed as the successful model for dealing with a complete implosion of a country’s banking system. A lost decade or two is preferrable to a severe depression?
What’s the choice? Let the banks fail and the priviledged bond holder lose money or the sheeple lose a decade or two? Bond holders and bankers lose…OR…sheeple lose, hmmmmm, what will they chose?
I’m surprised by people that think we can’t have housing falling for 15 years here in the US. Despite all the arguements that say we aren’t going to end up like Japan, our Gov. keeps inching closer and following the same play book.
I’ve read stories of people in Japan who have kept up on mortgage payments for 15 years hoping to recover losses and they are still upside down. To me, that is a bankers wet dream at this point in the game.
