Re: What happened to Japan?

From: Larry Innes (larryinnes_at_yahoo.com)
Date: 07/14/04 

Date: 14 Jul 2004 16:18:30 -0700

That theory is quite convincing. Many people believe that US has
developed a similar asset bubble right now through the same debt
financing process. One of the economists who has similar view is Kurt
Richebacherhttp. See
http://www.gold-eagle.com/research/richebacherndx.html

"Robert B. Fien" <BobFien@sbcglobal.net> wrote in message news:<0McJc.20272$H87.18989@newssvr27.news.prodigy.com>...
> Japan's GAAP allows assets to be held on the books at either FMV or Purchase
> price "whichever is greater" (US is "whichever is less") which gave (gives?)
> Japan a "debt financing" advantage in inflationary cycles but, when property
> values dropped, loan covenents (loan/value ratios) went upside down, bank
> portfolios went upside down, lending (especially working capital
> lines-of-credit) dried up and.......recession.
> That's one theory at least.