Quote:
Originally Posted by Rain Man
It's easy to argue that 1989 was a bubble, but even if you eliminate that, it's essentially been stagnant since the early 1990s.
I don't get it. It's not like fly-ridden people are starving in the streets. You'd think that even stagnation would produce a mild gain every year just due to inflation. I keep pondering buying in on Japan, but after 20 years, what's changing for the positive? I'm mystified.
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My understanding (I AM NOT AN EXPERT and college was A LONG time ago) was that the Japanese tried to fight the crash by lowering interest rates. It failed to stimulate the economy and would wreck it if they raised it - so it sits.
It worries me about the US economy because our interest rate has been in the crapper largely since 9/11. That's gaining on 2 decades.
EDIT: Looks like they raised it up in 06, but it has been in essentially 0 since 08 so a decade. That's a long time.
https://fred.stlouisfed.org/series/FEDFUNDS