Send a Tweet
Most Popular Choices
Poll Analyses
Share on Facebook 4 Share on Twitter Printer Friendly Page More Sharing
OpEdNews Op Eds    H2'ed 1/15/11

America Replicating Japan

By       (Page 4 of 9 pages) Become a premium member to see this article and all articles as one long page. (View How Many People Read This)   1 comment
Author 194
Message Stephen Lendman
Become a Fan
  (193 fans)

This piece was reprinted by OpEdNews with permission or license. It may not be reproduced in any form without permission or license from the source.

Before his summer 2007 death, noted economist Kurt Richebacher titled his 2004 commentary: "Property Bubbles: Beware of Property Bubbles," explaining: 

the certainty that they all "end painfully, housing (ones) in particular. They're an especially dangerous (type) asset bubble because of their extraordinary debt intensity." Extracting wealth (through refinancing) from rising valuations, and "heavily entangl(ing) banks and the whole wealth financial system as lenders" assures a bad ending eventually. Moreover, the longer excesses continue, the worse the outcome and greater amount of time needed to recover.

As a result, property bubbles have historically been the main cause of major financial crises. In Japan and America alone, their banking systems experienced "calamitous effects....through a horrendous legacy of bad loans" that continue to plague both countries - besides others, notably China with a far greater housing bubble than America's at its peak. 

In 2010 alone, China built up to 15 million units. In 2006, America's bubble peak, only 2.5 million were completed. At the end of the 1980s, Japan had a monstrous housing bubble. China's current one rivals it, but so far it hasn't burst. Richebacher's warning, however, bears repeating: "Beware of Property Bubbles." They all end badly.

(4) Falling prices show America's house price deflation continues. 

(5) At 26.5%, "(h)ousing is still the largest asset on the baby-boomer balance sheet." Declining valuations affect their spending and attitudes.

(6) Real US unemployment and underemployment remain major problems, neither showing signs of improving.

(7) At nearly seven million, the total number of unemployed Americans for 27 weeks or longer is a record high. At 45%, so is the ratio of their numbers compared to total unemployment.

Next Page  1  |  2  |  3  |  4  |  5  |  6  |  7  |  8  |  9

 

Must Read 2   Well Said 2   Interesting 1  
Rate It | View Ratings

Stephen Lendman Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

[My newest book as editor and contributor is titled "Flashpoint in Ukraine: How the US Drive for Hegemony Risks WW III." www.claritypress.com/LendmanIII.html]

Stephen Lendman was born in 1934 in Boston, MA. In 1956, he received a (more...)
 

Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Writers Guidelines
Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

STAY IN THE KNOW
If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEdNews Newsletter
Name
Email
   (Opens new browser window)
 

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

The McCain-Lieberman Police State Act

Daniel Estulin's "True Story of the Bilderberg Group" and What They May Be Planning Now

Continuity of Government: Coup d'Etat Authority in America

America Facing Depression and Bankruptcy

Lies, Damn Lies and the Murdoch Empire

Mandatory Swine Flu Vaccine Alert

To View Comments or Join the Conversation: