Comments on: Any reaction? Land of the Sinking Sun http://www.froginawell.net/japan/2008/10/any-reaction-land-of-the-sinking-sun/ The Japan History Group Blog Sun, 27 Nov 2011 22:45:05 -0800 hourly 1 http://wordpress.org/?v=3.1.3 By: Aaron William Moore http://www.froginawell.net/japan/2008/10/any-reaction-land-of-the-sinking-sun/comment-page-1/#comment-171794 Aaron William Moore Mon, 13 Oct 2008 21:40:03 +0000 http://www.froginawell.net/japan/?p=421#comment-171794 Earl Kinmouth and Richard Katz were recently discussing the comparison between the US crisis and Japan's prior bubble on SSJ. I don't know if you all were reading that, but it was interesting. Their conclusion was fairly similar to Jonathan's--that declining US demand would be crippling to everyone in East Asia, so it's in their interest to give us money (especially me). One thing worth mentioning is that the funds required to bail out US debt, however calculated, are a far smaller fraction of the US GDP than what Japan was facing after its bubble burst. Therefore, US readjustment is presumed to be quicker and less painful than the "lost decade," even if we manage to cripple the ROK, ROC, PRC, and Japan along with us. I'm no economist, but it's worth thinking about. AWM Earl Kinmouth and Richard Katz were recently discussing the comparison between the US crisis and Japan’s prior bubble on SSJ. I don’t know if you all were reading that, but it was interesting. Their conclusion was fairly similar to Jonathan’s–that declining US demand would be crippling to everyone in East Asia, so it’s in their interest to give us money (especially me). One thing worth mentioning is that the funds required to bail out US debt, however calculated, are a far smaller fraction of the US GDP than what Japan was facing after its bubble burst. Therefore, US readjustment is presumed to be quicker and less painful than the “lost decade,” even if we manage to cripple the ROK, ROC, PRC, and Japan along with us. I’m no economist, but it’s worth thinking about.

AWM

]]> By: Jonathan Dresner http://www.froginawell.net/japan/2008/10/any-reaction-land-of-the-sinking-sun/comment-page-1/#comment-170734 Jonathan Dresner Fri, 10 Oct 2008 12:52:58 +0000 http://www.froginawell.net/japan/?p=421#comment-170734 I don't see much of a point leaving a comment there, but it seems pretty obvious to me that Japan's financial crisis isn't internal: it's based on an entirely rational concern about the collapse of the <i>American</i> consumer market. The best thing they could do would be to inject capital into the US market, preferably through stimulus checks to Japanese studies scholars..... I don’t see much of a point leaving a comment there, but it seems pretty obvious to me that Japan’s financial crisis isn’t internal: it’s based on an entirely rational concern about the collapse of the American consumer market. The best thing they could do would be to inject capital into the US market, preferably through stimulus checks to Japanese studies scholars…..

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