What this tells me is that for the last 20 years, it was more profitable to invest in the government than in private companies. I'd suggest that when that happens, you're screwed.
Saturday, January 02, 2010
Invest In The Government - After All, It's Growing!
B-Daddy has an excellent post up suggesting that Japan's lost decades may foreshadow our future. Here's a key graph from his post (which is worth reading in its entirety).
What this tells me is that for the last 20 years, it was more profitable to invest in the government than in private companies. I'd suggest that when that happens, you're screwed.
What this tells me is that for the last 20 years, it was more profitable to invest in the government than in private companies. I'd suggest that when that happens, you're screwed.
You're an optimist. I think it will be worse than that, much worse.
ReplyDeleteI've heard much about Japan's lost decade and am curious if it's incorrect to refer to it in the singular.
ReplyDeleteA belated Happy New Year's, KT!
Dean, it's now two decades and counting. The recent elections in Japan have led to a government that is doubling down on borrow and spend. They're much farther down the path to destruction than we are - they may well provide an unpleasant cautionary tale. See this for more.
ReplyDeleteKT, thanks fr the link. Love the quote: "doubling down on borrow and spend."
ReplyDeleteI would say that we have an advantage of demography, i.e. more young people as a percent of population, that Japan lacks, which exacerbates their problems.