Quote:
Originally Posted by Coach
I think perhaps the Japanese asset price bubble that popped in 1990-1992, and they either put effective tight controls on it, or is skittish to even consider it again?
Just reading it over on Wikipedia. I know Wikipedia isn't exactly a greatest source, but it's something to look at.
https://en.wikipedia.org/wiki/Japane...t_price_bubble |
Quote:
Originally Posted by Buehler445
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 |
I definitely didn't take the right kinds of college courses to understand this stuff. Based on what you said, it sounds like they shifted the economic transmission into first gear and then the gearshift knob came off. So I wonder what has to happen for it to start moving again - it sounds like it has to come from something other than policy.