Economist Richard Koo: U.S. Debt & Deficits Mean We’re Becoming Japan (VIDEO)
Courtesy of The Daily Bail
Video: Nomura Chief Economist Richard Koo
- 3:00 The U.S. should be seeing 3 or more bubbles with all the interest rate stimulus.
- 3:50 Bankers not lending money is front page news, but when borrowers are not borrowing its not front page, and that is where we are right now
- 5:00 Even with 0% interest rates, demand for funds is contracting
- 7:15 In Japan, the cash flow was significant for companies, but asset prices had collapsed, so companies chose to pay down the debt on their underwater balance sheets
- 9:55 This situation is called a "balance sheet recession;" prior to Japan, the last significant example of this is the Great Depression


