The bourgoisie worries about the Japanization of the US economy

[Michael Perelman]

Doug, if jiggling interest rates is sufficient to avoid a crisis, you may
be correct, but if there are deeper structural problems and the stock
market is just froth on the top .....

On Thu, Mar 29, 2001 at 03:01:22PM -0500, Doug Henwood wrote:
> Ian Murray wrote:
> 
> >http://www.tieconomy.com/articles/japansfunk.htm
> 
> Well, they're not *too* worried. The consensus seems to be a 10% 
> chance. The mighty C. Fred Bergsten declares: "There is very little 
> risk that the United States will become overconfident and suffer a 
> severe economic reversal as Japan did a decade ago." No sign of 
> overconfidence in that sentence!
> 
> Like I said before, though, one big difference is that the BoJ kept 
> raising rates for over a year after the Japanese stock market peaked 
> on the last trading day of 1989; the Fed has been easing pretty 
> aggressively.
> 
> Doug

-- 
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu