Tag Archives: bubble

Japan: A Normal Country

See my latest blogspot “Japan and Economics” post on Japan as “normal” in response to the “bond vigilante” claim that high-debt countries are bound to soon see high interest rates [and, typically, high inflation when these same people focus on monetary policy indicators]. Needless to say, anyone who’s actually made investments on the basis of these claims has lost their shirt. Somehow that doesn’t seem to get anyone to rethink their position.

Japan looks more and more ordinary across many dimensions. Continue reading

Japan’s Shadow Banks

Japan remains overbanked…
For those who go back a long time, Japanese banking used to be characterized by “overborrowing”, “overlending” and “overbanking” – high debt/equity ratios in the corporate sector, and borrowing too much money from the Bank of Japan, Continue reading