YOU SHOULD BE VERY CONCERNED ABOUT THE PARALLELS WITH JAPAN
by ilene - November 13th, 2009 1:29 pm
YOU SHOULD BE VERY CONCERNED ABOUT THE PARALLELS WITH JAPAN
Courtesy of The Pragmatic Capitalist
We here at TPC aren’t the only ones concerned about the parallels with
I’m scared and leaders should look out. America is doing exactly what Japan did last time.”
As opposed to dealing with our issues here at home, Tsang believes the Fed has created a dollar carry trade that is simply reflating bubbles all over the world:
“We have a U.S. dollar carry trade at the moment. Where is the money going — it’s where the problem’s going to be: Asia. You can see asset prices going up, not only in Korea, in Taiwan, in Singapore and in Hong Kong, going up to levels that are incompatible or inconsistent with the economic fundamentals.”
As we’ve previously mentioned, the parallels between the current deleveraging cycle here in the U.S. and Japan’s deleveraging cycle of the 90’s, are numerous. Credit Writedowns recently posted this excellent video from Fox Business which succinctly touches on many of these similarities. I highly recommend readers take a look (attached below).
One of the most interesting takeaways from the video is the current