Market Overview Analysis by Michael Lebowitz covering: USD/JPY, US Dollar Index Futures. Read Michael Lebowitz's latest article on Investing.com
to appreciate better why Japan’s GDP is smaller than it was in 1995 and why it took 35 years for its stock market to set its recent record high.
To appreciate the enormity of their bubbles, consider the following from Ben Carlson’s article The Biggest Asset Bubble In History. From 1970-1989, Japanese large cap companies were up more than 22% per year. Small caps were up closer to 30% per year. For 20 years!Japan was trading at a CAPE ratio of nearly 100x which is more than double what the U.S. was trading at during the height of the dot-com bubble.
Conversely, U.S. banks are healthy and well-capitalized. Additionally, the Fed is very in tune with the amount of reserves in the banking system and stands ready to provide more when needed. Reserves are the fodder banks require to make loans. After the bubble, the government was called upon to stimulate the economy. Their interference ultimately resulted in the unproductive allocation of resources, which, in the long term, likely reduced economic activity, thereby prolonging their weakness.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Is Gold Warning Us or Running With the Markets?Commodities Analysis by Michael Lebowitz covering: XAU/USD, S&P 500, NVIDIA Corporation, Gold Futures. Read Michael Lebowitz's latest article on Investing.com
Read more »
Japan's Lost Decades: Are We on the Same Path?Market Overview Analysis by Michael Lebowitz covering: S&P 500, Nikkei 225. Read Michael Lebowitz's latest article on Investing.com
Read more »
Fix Japan’s work culture to fix Japan’s birth rateIt is still possible for a population in decline even as severely as Japan’s to recover, but it requires serious cultural reexamination.
Read more »
Michael: Larenz Tate, Kat Graham, & More Cast in Michael Jackson BiopicLarenz Tate, Kat Graham, Jessica Sula, and more join the cast of Antoine Fuqua's Michael Jackson biopic, Michael.
Read more »
Michael: A Biopic on the Life of Michael JacksonThe upcoming biopic 'Michael' will chronicle the life of Michael Jackson, from his time as a member of the Jackson 5 to becoming the King of Pop. Directed by Antoine Fuqua, the film is set for a Spring 2025 release and aims to shed light on the complex issues in Jackson's life. The cast includes Berry Gordy and Diana Ross, indicating a comprehensive exploration of the prominent individuals in Jackson's life.
Read more »
Japan Expects Bank of Japan to Conduct Appropriate Monetary PolicyJapan Chief Cabinet Secretary Yoshimasa Hayashi expects the Bank of Japan (BoJ) to conduct appropriate monetary policy in close cooperation with the government.
Read more »