Japan had its own banking problem of enormous proportions in the 1980s. Low interest rates and high real estate prices caused a bubble that burst and a stock market that collapsed, Japan tried similar measures that we are now trying. They did not work and were followed by what became known as Japan's "Lost Decade."
For our economy to recover, people need to buy things. Other people need to produce things and put the people that are buying things to work to have money for their purchases. Complicating things immensely is globalization. We have to coordinate our plans. If a recovery starts here and China collapses, we slide right back down with them. A bigger problem is, what we need, we need to get rid of. We need to "consume" but we have been awash in consumerism.
The Japanese are a frugal people, to their credit, as Americans used to be. If we do learn something from this crisis, and become more frugal, the crisis lasts longer, but the potential of another "boom and bust" lessens. Its a moot point because the "stimulus" will probably cause a burst of consumerism followed by, just a burst. If I had my druthers, we would say good-bye to globalization. We could then produce many of the basic goods that are produced elsewhere and put our people to work. That might put us back to where we once were, prosperous, somewhat frugal, able and desirous of "helping" the rest of the world, for they are going to need it unless they adopt similar methods.
For our economy to recover, people need to buy things. Other people need to produce things and put the people that are buying things to work to have money for their purchases. Complicating things immensely is globalization. We have to coordinate our plans. If a recovery starts here and China collapses, we slide right back down with them. A bigger problem is, what we need, we need to get rid of. We need to "consume" but we have been awash in consumerism.
The Japanese are a frugal people, to their credit, as Americans used to be. If we do learn something from this crisis, and become more frugal, the crisis lasts longer, but the potential of another "boom and bust" lessens. Its a moot point because the "stimulus" will probably cause a burst of consumerism followed by, just a burst. If I had my druthers, we would say good-bye to globalization. We could then produce many of the basic goods that are produced elsewhere and put our people to work. That might put us back to where we once were, prosperous, somewhat frugal, able and desirous of "helping" the rest of the world, for they are going to need it unless they adopt similar methods.
