Is America Repeating Japan's Mistakes?

Want to be scared?  Then read this post by Financial Ninja who argues that America is repeating the mistakes of Japan.

Given the way the government is supporting so many "zombie" companies, the comparison may be apt.

This is a graph of the Nikkei 225 since 1980.

click to enlarge

So much for buy and hold.

Comments

[investor88:]

Despite Bernanke being a self proclaimed expert on defeating deflation, it seems he is repeating Japan's mistake of supporting Zombie companies. So look for a tough few years or even a decade ahead.

2008 Nov 13 03:31 AM

[vbierschwale:]

Actually its worse then that..
In 29 we were all Americans and we were all in the same boat.

This time it's an us against them mentality.

We have our corporations and politicians sending our jobs offshore and its the people that work that keep things humming and pay the taxes necessary to run this country.

We have our corporations and politicians transferring their assets offshore so that they don't pay their fair share of taxes.

People working and paying taxes is what keeps the infrastructure running.

Right now the infrastructure is broken down to about 25% unemployment and rapidly heading to the 50% level.

The sad thing is, all that is necessary to turn this mess around is to bring our jobs home and stop the transferring of assets from American owned companies to foreign countries.

These people need to wake up and decide whether they want to support their community, county, state and America or if they would rather transfer their citizenship to the country where they are transferring their assets at, because enough of us are fed up to help them pack up and move.

By the way, if you know of any company that is offshoring their jobs or transferring their assets to avoid paying taxes, let me know so I can add them to the "Wall of Shame" at www.KeepAmericaAtWork....

Thanks,

Virgil

2008 Nov 13 07:46 AM

[venividivici:]

Brilliant stuff

2008 Nov 13 09:20 AM

[David Roskoph:]

Who do you think the BOJ was calling for help?
Then too the Japanese were scrupulous savers vs our glutenous consumption.
The risk of this Republic falling has greatly increased.

2008 Nov 13 12:38 PM