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Anyone knowledgeable on history of japan economy and Markets?
The two last recessions Japan has encountered were the "Lost Decade", which ended in 2001, and the aftermath of the Financial Crisis from 2008 to 2009.
The US was already running a huge commercial deficit in the eighties, and following the Plaza Accord, the US dollar was devalued, which in turn hit Japan's export-oriented economy and then led to expansionary moetary policies and the huge Japanese asset price bubble. This ended up in a recession in Japan that lastet for a decade.
Officially the recession was over in 2001, but the growth that Japan experienced from 2001 to 2008 was only moderate compared to the rapid expansion in the eighties.
In November 2008 Japan was back into recession, as the United States triggered the financial crisis. In 2010 Japan's economy experienced the strongest growth in 20 years. Following the earthquake in 2011, Japan's economy was put back into recession.
So there never was a depression. And Japan has only been in recession for 2 out of the last 10 years.
I am no expert, but if you want to understand what happened after the 1970s stock market peak, you don't have to look any further than the nasqad peak in 2000. Politicians in japan took the same actions that are taken by our politicians currently. Namely print money, save the too big to fail banks, and more regulations.
The difference between them and us is they are an exporting economy and the people has a lot of savings. I think they save like 40% of their earnings.
Prior to the lost decade - that is prior to 1990 - the Japanese had one of the highest savings rates in the world. In 2009 the savings rate was 5 per cent, up from 2.2 per cent in 2008. Goldman Sachs predicts a negative savings rate.
This is because the Japanese are Americanize. Who don't want to be American? Remember, without American eating what the rest of the world produce, they would be out of the jobs.
Sorry this is both a bit macho and nonsense. The American Way of Life just stands for
-> destroying the natural habitat which we were given to live in
-> inefficient use of energy and over-consumption
-> propagation of greed and recklessness
-> abuse of the position of the dollar as a lead currency
It is a bit like Rome in its last days. No I am not a socialist. I have moticed that in the US non-conforming opinions are easily brand-marked as socialist. But - even with Europe following the United States in the foot steps -, I cannot see that there should be anything good about this.
"Successful trading is one long journey, not a destination" Peter Borish Former Head of Research for Paul Tudor Jones speaking on conversations with John F. Carter
