[quote=sdduuuude][quote=carlsbadworker]The economy will recover one day or another. I believe at least we agree on that, right?
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One day, I guess.
What is it about “Japan had 0% rates and still lost a decade” that people don’t understand ?
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True. But Japan’s bubble was 3x the size of ours as calculated by the ratio of (total real estate value + stock market value)/GDP. And 95% of the debt related to Japan’s bubble was domestic. 26% of our bubble debt is held by foreigners. Not saying we won’t have an ugly decade – we will – but let’s put the two bubbles in the proper perspective relative to each other before we start predicting comparative futures. We have more debt and lower savings than did Japan, but our bubble was a mere fraction of theirs. Net/net we’re coming out of our bubble with better prospects than Japan – which just means we’ll suck a little less wind than they have, which may not be much consolation for a lot of folks.
