Japanese gov’t and stopping their RE bubble

[4runner]

Does anyone know about the steps taken by the Japanese gov’t during their real estate bubble?

Were there any public/private partnerships that resemble the ones being proposed in Ohio and elsewhere?

[Cow_tipping]

Japan has a culture – OK the people that were raised in the 50’s and 60’s ( unlike our selfish , me me me baby boomers) where people not paying their debts was A huge insult to their family name. They are also super hardworking and save like maniacs, and literally overpriced or not, they were serious about paying for it.
That resulted in a very very slow default rate. I think there were bail outs of banks and other financial institutions that held the bad paper, but homeowners were paying for it even if it meant starving to death. That created a slow motion crash lasting 16 years with a 60% deflation comming in in that 16+ years. I dont think it was even anything like 5-8% a year.
Cool.
Cow_tipping.

[PD]

Unlike the Japanese, J6P is going to walk away when he sees the writing on the wall. Further, after downing a few, he’s going to brag to his buddies about how he stuck it to the bank by taking the dishwasher and faucets.

[PerryChase]

I think that you’re right PD.
I just looked at realtytrac.com and I was surprised at the NODs out there. There’ll be a lot of borrowers walking away from their homes.

As for Japan, the government increased public debt to 176% of GDP (highest of the rich countries) to support the tanking economy and the building industry (they built roads and bridges to nowhere). It’s a good thing that the Japanese people are great savers. I’ve worked in Japan and I think that they work long hard hours but they are not that productive. Social pressure cause them to put in long hours but most of it is wasted (especially in white collar professions).

Japan has some great world class companies and some great technologies (such as mobile phones) but their structural problems are much greater than America’s.

The Japanese are slaving away to support bloated industries. For what? $1 million for a small apartment in Tokyo? That’s nuts.

Our cultural ability to say f— it and walk away from the debt will allow us to recover economically much faster than Japan.

[what_a_disasta]

http://www.everbank.com/001CertificatesMSReit.aspx

do you think this japan REIT tracker fund is a good deal?

[Author]

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