It has come to my attention through a very knowledgeable source M.G. (you know who you are) that the actions the US is taking through propping up banks and correcting credit issues may only cause further demise to our financial system.
In 1989, Tokyo Japan hit an all time high real estate boom with properties reaching as high as $93,000/SF in the Ginza Financial district. Over a gradual 15 year period prices of these financial district properties reached a low of 1% of its all time high and residential properties followed by reaching lows of 10% of there highs of 1989.
From 1989 to 1997, The Japanese Central Bank and the Japanese Government intervened just as the FED and US government is doing as we speak. Somehow we have not grasp the concept of "history repeating itself" which leaves me with one question: It has been 20 years since Japan hit it's all time real estate boom and they are still feeling financial hardships...How long will it take us Americans to crawl out of the trench we have dug?
In October 2008 the Japanese Nikkei 225 stock index reached a 26-year low of 6,994.90.
Click any one of the links to read more on the The Lost Decade
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395
yes....this is a bone-headed attempt to make the people feel better...and it's irresponsible, in my humble opinion.
Feb 15, 2009 03:30 AM
Sea to Sky Premier Properties (Salt Spring) - Salt Spring Island, BC
Caring expertise...knowledge for you!
I've read these ideas, too, and will check out your links. I also read, though, that the Japanese system was more like a top down "control format", which is not at all like the U.S. system, that allows creative expression. That's a profound difference, and might make quite a different outcome possible.
Feb 15, 2009 03:32 AM
eLoanRates.org - Thornton, CO
I believe that we are trying to prevent exactly what happened to Japan with their 'lost decade' from happening here...time will tell on this one.
Feb 15, 2009 03:42 AM
TheHousingGuru.com - Waleska, GA
Housing Guru
While we may be trying to avoid a "lost decade" as in Japan, we may, in fact, do much worse. In an interview this week, Timothy Geithner stated, "We're taking on risks and assets we don't understand." That's the bottom line to the actions of our leaders. They don't have a clue what the ramifications of their spending spree will be. All we can know for certain is that we've already created a massive debt load and the potential for hyper-inflation.
Feb 15, 2009 03:51 AM
Eau Claire Realty, Inc. - Eau Claire, WI
Eau Claire Wisconsin, Real Estate Agent & Realtor- Buy or Sell
Well I dont know if you are correct or not but one thing to add to your point is that Japan also does not have to pay for a military budget since we pay for that so they even have more money to spend in their budget and still could not get out of the hole.
Feb 15, 2009 03:53 AM
CENTURY 21 All Islands - Mililani, HI
REALTOR ABR, CRS, GRI, RSPS
We hope we can learn from other's mistakes. I have heard the pundits say that Japan's actions to cure their ailing economy were working, but they discontinued them too early, resulting in a re-crash, worst than the first. Who knows what will happen to us.
Feb 15, 2009 03:57 AM
Keller Williams-Lake Norman Mooresville,NC - Mooresville, NC
This is scary. I didn't realize but thanks for the post. I'll keep praying for our leaders to make good decisions.
Feb 15, 2009 05:11 AM
Rainer
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Chris Johnson
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