Home › Forums › Financial Markets/Economics › The past doesn’t repeat but it Rhymes: Lessons from Japans Financial Crisis
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May 30, 2009 at 3:31 PM #408266May 30, 2009 at 3:55 PM #407596
Rt.66
Participant[quote=patientrenter]Rt 66, do you think American borrowers will vote to pay off their personal debts in full, or vote to pay back less than they personally borrowed (and have the rest of the real burden of debt reduction covered by the general taxpayer and by domestic/foreign savers through inflation/currency devaluation)?
I have an idea myself, but I am curious what you think the voters at large will choose to do.
[/quote]We won’t get to vote on it.
More and more people are chosing to default on all kinds of loans, so I guess that’s a form of voting with your wallet.
If we could vote I’d bet F@cked Borrowers would chose inflation, allthough any dollars they have outside of their house will lose value. Another example of how the FB crowd’s wants and needs evolve around their bad decision and turn out bad for the rest of us.
For me, I want deflation, so my dollars buy more. We’ve have enough inflation, time for some sanity to return.
May 30, 2009 at 3:55 PM #407838Participant[quote=patientrenter]Rt 66, do you think American borrowers will vote to pay off their personal debts in full, or vote to pay back less than they personally borrowed (and have the rest of the real burden of debt reduction covered by the general taxpayer and by domestic/foreign savers through inflation/currency devaluation)?
I have an idea myself, but I am curious what you think the voters at large will choose to do.
[/quote]We won’t get to vote on it.
More and more people are chosing to default on all kinds of loans, so I guess that’s a form of voting with your wallet.
If we could vote I’d bet F@cked Borrowers would chose inflation, allthough any dollars they have outside of their house will lose value. Another example of how the FB crowd’s wants and needs evolve around their bad decision and turn out bad for the rest of us.
For me, I want deflation, so my dollars buy more. We’ve have enough inflation, time for some sanity to return.
May 30, 2009 at 3:55 PM #408080Participant[quote=patientrenter]Rt 66, do you think American borrowers will vote to pay off their personal debts in full, or vote to pay back less than they personally borrowed (and have the rest of the real burden of debt reduction covered by the general taxpayer and by domestic/foreign savers through inflation/currency devaluation)?
I have an idea myself, but I am curious what you think the voters at large will choose to do.
[/quote]We won’t get to vote on it.
More and more people are chosing to default on all kinds of loans, so I guess that’s a form of voting with your wallet.
If we could vote I’d bet F@cked Borrowers would chose inflation, allthough any dollars they have outside of their house will lose value. Another example of how the FB crowd’s wants and needs evolve around their bad decision and turn out bad for the rest of us.
For me, I want deflation, so my dollars buy more. We’ve have enough inflation, time for some sanity to return.
May 30, 2009 at 3:55 PM #408143Participant[quote=patientrenter]Rt 66, do you think American borrowers will vote to pay off their personal debts in full, or vote to pay back less than they personally borrowed (and have the rest of the real burden of debt reduction covered by the general taxpayer and by domestic/foreign savers through inflation/currency devaluation)?
I have an idea myself, but I am curious what you think the voters at large will choose to do.
[/quote]We won’t get to vote on it.
More and more people are chosing to default on all kinds of loans, so I guess that’s a form of voting with your wallet.
If we could vote I’d bet F@cked Borrowers would chose inflation, allthough any dollars they have outside of their house will lose value. Another example of how the FB crowd’s wants and needs evolve around their bad decision and turn out bad for the rest of us.
For me, I want deflation, so my dollars buy more. We’ve have enough inflation, time for some sanity to return.
May 30, 2009 at 3:55 PM #408291Participant[quote=patientrenter]Rt 66, do you think American borrowers will vote to pay off their personal debts in full, or vote to pay back less than they personally borrowed (and have the rest of the real burden of debt reduction covered by the general taxpayer and by domestic/foreign savers through inflation/currency devaluation)?
I have an idea myself, but I am curious what you think the voters at large will choose to do.
[/quote]We won’t get to vote on it.
More and more people are chosing to default on all kinds of loans, so I guess that’s a form of voting with your wallet.
If we could vote I’d bet F@cked Borrowers would chose inflation, allthough any dollars they have outside of their house will lose value. Another example of how the FB crowd’s wants and needs evolve around their bad decision and turn out bad for the rest of us.
For me, I want deflation, so my dollars buy more. We’ve have enough inflation, time for some sanity to return.
May 30, 2009 at 4:19 PM #407616patientrenter
ParticipantRt 66: “We won’t get to vote on it…. If we could vote I’d bet …. Borrowers would chose inflation…”
I think you are right about the way voters will choose. I think you are wrong about not getting to vote. I know there’s a desire to be more cynical than thou sometimes about our democracy, and to pretend that the majority of voters cannot influence political decisions. But I think that’s way too extreme a view. And besides, there is a whole collection of 800-pound gorilla special interests who favor inflation over deflation: banking, RE, investment managers, most highly leveraged companies…. Put the general public’s preference for not repaying its debts in full together with all those special interests and I think you get one unstoppable force.
May 30, 2009 at 4:19 PM #407858ParticipantRt 66: “We won’t get to vote on it…. If we could vote I’d bet …. Borrowers would chose inflation…”
I think you are right about the way voters will choose. I think you are wrong about not getting to vote. I know there’s a desire to be more cynical than thou sometimes about our democracy, and to pretend that the majority of voters cannot influence political decisions. But I think that’s way too extreme a view. And besides, there is a whole collection of 800-pound gorilla special interests who favor inflation over deflation: banking, RE, investment managers, most highly leveraged companies…. Put the general public’s preference for not repaying its debts in full together with all those special interests and I think you get one unstoppable force.
May 30, 2009 at 4:19 PM #408099ParticipantRt 66: “We won’t get to vote on it…. If we could vote I’d bet …. Borrowers would chose inflation…”
I think you are right about the way voters will choose. I think you are wrong about not getting to vote. I know there’s a desire to be more cynical than thou sometimes about our democracy, and to pretend that the majority of voters cannot influence political decisions. But I think that’s way too extreme a view. And besides, there is a whole collection of 800-pound gorilla special interests who favor inflation over deflation: banking, RE, investment managers, most highly leveraged companies…. Put the general public’s preference for not repaying its debts in full together with all those special interests and I think you get one unstoppable force.
May 30, 2009 at 4:19 PM #408163ParticipantRt 66: “We won’t get to vote on it…. If we could vote I’d bet …. Borrowers would chose inflation…”
I think you are right about the way voters will choose. I think you are wrong about not getting to vote. I know there’s a desire to be more cynical than thou sometimes about our democracy, and to pretend that the majority of voters cannot influence political decisions. But I think that’s way too extreme a view. And besides, there is a whole collection of 800-pound gorilla special interests who favor inflation over deflation: banking, RE, investment managers, most highly leveraged companies…. Put the general public’s preference for not repaying its debts in full together with all those special interests and I think you get one unstoppable force.
May 30, 2009 at 4:19 PM #408310ParticipantRt 66: “We won’t get to vote on it…. If we could vote I’d bet …. Borrowers would chose inflation…”
I think you are right about the way voters will choose. I think you are wrong about not getting to vote. I know there’s a desire to be more cynical than thou sometimes about our democracy, and to pretend that the majority of voters cannot influence political decisions. But I think that’s way too extreme a view. And besides, there is a whole collection of 800-pound gorilla special interests who favor inflation over deflation: banking, RE, investment managers, most highly leveraged companies…. Put the general public’s preference for not repaying its debts in full together with all those special interests and I think you get one unstoppable force.
May 30, 2009 at 4:21 PM #407621
Rich ToscanoKeymasterSome aspects of the credit crisis are similar to japans biut with one big difference: they are a net creditor and we are a net debtor. As a predictable result the policy reponses in each case have been vastly different, as decribed in the japan article linked at the upper right of the page.
Rich
May 30, 2009 at 4:21 PM #407863Rich ToscanoKeymasterSome aspects of the credit crisis are similar to japans biut with one big difference: they are a net creditor and we are a net debtor. As a predictable result the policy reponses in each case have been vastly different, as decribed in the japan article linked at the upper right of the page.
Rich
May 30, 2009 at 4:21 PM #408104Rich ToscanoKeymasterSome aspects of the credit crisis are similar to japans biut with one big difference: they are a net creditor and we are a net debtor. As a predictable result the policy reponses in each case have been vastly different, as decribed in the japan article linked at the upper right of the page.
Rich
May 30, 2009 at 4:21 PM #408168Rich ToscanoKeymasterSome aspects of the credit crisis are similar to japans biut with one big difference: they are a net creditor and we are a net debtor. As a predictable result the policy reponses in each case have been vastly different, as decribed in the japan article linked at the upper right of the page.
Rich
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