Trading to Win

The Banker's Dilemma

Worth a read:

www.theglobeandmail.co...

'A second myth is that Japan suffered more than the United States and other countries will today because its bubble was so much bigger. In reality, the credit and asset bubble that built up in the United States was the biggest in history. At the peak of Japan's bubble, it needed three yen of credit to make one yen of national income. The United States needed eight dollars of credit for every dollar of income. In Japan, the bubble grew for only about five years in the high-flying late 1980s. In the United States, the credit binge has been going on for a couple of decades.'