Retire Soon
Full time employment: Posting here.
- Joined
- Nov 23, 2005
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Mr. Yen (Eisuke Sakakibara), the former Japanese Deputy Minister of Finance who is now a university professor believes that there are strong parallels between the current crisis in the U.S. economy and what Japan experienced when their chronic financial problems first began in the early 90's. Much like the U.S., Japan's problems began in the mortgage sector and quickly spread to commercial banks and security firms. In the financial markets problems spread very rapidly. The Fed is reacting to these problems by implementing policies piece by piece and unfortunately, much like Japan was, we are behind the curve. Mr. Yen believes that rather than attack the problem piecemeal, that what authorities really need to do is defend the financial system as a whole. We have passed the point of moral hazard in our concerns of bailing out bad performers. Much like Japan, suggestions of a taxpayer bailout will be met with strong public and private resistance, however, it will be eventually become inevitable. Real estate prices in the U.S. could stagnate far into the future. Personally, I believe there is a possibility that Mr. Yen may be right. Why is it different for the U.S.?
'Mr. Yen' sees U.S. policy makers as behind the curve - Los Angeles Times
'Mr. Yen' sees U.S. policy makers as behind the curve - Los Angeles Times
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