Monday, October 05, 2009

Spengler strikes again

Asia Times Online :: Asian news and current affairs: "The parallels between America in 2009 and Japan in 1989 are uncanny. An asset price bubble has collapsed, just before a tsunami of prospective retirements that the asset bubble was supposed to fund. Demand for savings is bottomless, and the government satisfies demands for savings by running a huge deficit and issuing debt. The crippled banking system borrows at an interest rate of zero and buys government securities. And the economy shrivels up and dies."
I hope he's wrong, but his explanation is persuasive.

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