Ray Lopez

How the U.S. Financial Crisis Resembles Japan’s 'Lost Decade' - And How to Play It, Part II

One thing about Japan-- it is not like the USA because they don't have a consumer culture (though, strangely, their percent of the economy that is services is still pretty high). What this means is this: as interest rates drop in Japan, people save more, not less, the opposite of the USA. That's why interest rates can go to zero and people still give their money to banks in Japan, and don't invest in stocks nor consume their savings. A big problem that has been remarked about in the past by academics. So I don't think Japan = USA.