Collapse Of The US Economy JAPAN - AMERICA | Part One
Japan's Real Estate and Stock Market Bubble
In the present day, asset bubbles sometimes are fuelled by overly stimulative monetary policy. Japan's economic bubble of the 1980s is a classic example. The yen's 50% surge in the early 1980s triggered a Japanese recession in 1986, and to counter it, the government ushered in a program of monetary and fiscal stimulus.
These measures worked so well that they fostered unbridled speculation, resulting in Japanese stocks and urban land values tripling between 1985 and 1989.
At the peak of the real estate bubble in 1989, the value of the Imperial Palace grounds in Tokyo was greater than that of real estate in the entire state of California.
The bubble burst in 1991, setting the stage for Japan's subsequent years of price deflation and stagnant economic growth known as the Lost Decade
In the midst of an escalating pandemic, the US government enacted fiscal stimulus of an unprecedented magnitude between March 2020 and March 2021. The multifaceted stimulus acts provided for sizable Economic Impact Payments, better known as “stimulus checks”
these payments occurred in the context of significant growth in retail trading accounts and stock prices, particularly the prices of stocks that retail investors
tend to favor. Surveys suggest that on the order of 10%-15% of the payments may have shortly
found their way into the stock market.
The current US Federal reserve balance sheet (WALCL)
8.5 Trillion Dollars as of 2022
900 Billion Dollars from 2008
M2 (M2SL) Supply
21.4 Trillion as of 2022
7.6 Trillion from 2008
In the present day, asset bubbles sometimes are fuelled by overly stimulative monetary policy. Japan's economic bubble of the 1980s is a classic example. The yen's 50% surge in the early 1980s triggered a Japanese recession in 1986, and to counter it, the government ushered in a program of monetary and fiscal stimulus.
These measures worked so well that they fostered unbridled speculation, resulting in Japanese stocks and urban land values tripling between 1985 and 1989.
At the peak of the real estate bubble in 1989, the value of the Imperial Palace grounds in Tokyo was greater than that of real estate in the entire state of California.
The bubble burst in 1991, setting the stage for Japan's subsequent years of price deflation and stagnant economic growth known as the Lost Decade
In the midst of an escalating pandemic, the US government enacted fiscal stimulus of an unprecedented magnitude between March 2020 and March 2021. The multifaceted stimulus acts provided for sizable Economic Impact Payments, better known as “stimulus checks”
these payments occurred in the context of significant growth in retail trading accounts and stock prices, particularly the prices of stocks that retail investors
tend to favor. Surveys suggest that on the order of 10%-15% of the payments may have shortly
found their way into the stock market.
The current US Federal reserve balance sheet (WALCL)
8.5 Trillion Dollars as of 2022
900 Billion Dollars from 2008
M2 (M2SL) Supply
21.4 Trillion as of 2022
7.6 Trillion from 2008
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