Japan's Revenge: The United States Of Hypocrisy

The Business Insider ^ | 11/5/09

[FromLori]

In the late 1980s, all anyone could talk about was how Japanese companies were going to take over the world. The Japanese were smarter than we were, more disciplined than we were, more team-oriented than we were, hungrier than we were. Japan was taking over. We were done.

Then Japan's bubble burst.

And it was payback time.

In the late 1990s, all anyone in America could talk about was why Japan was mired in a "lost decade." It was cultural, everyone explained. The Japanese were just too wimpy and "team-oriented" to face the facts. Instead of just facing reality and forcing banks to write off all the stupid loans they had made in the bubble years, Japan was just playing extend and pretend.

And then our bubbles burst.

And now it's payback time again.

All anyone in Japan is presumably talking about now is how we should change our name to the United States of Hypocrisy.

Instead of forcing our banks to take responsibility for their stupid loans, write down losses, and move on, we've gone exactly the other way. We've changed the mark-to-market rules. We've given away hundreds of billions of dollars in bailout money. We've encouraged extend and pretend.

And now comes the latest in our long line of hard-ass economic-recovery policies, like bailout, denial, too big to fail, zombie banks, and extend and pretend:

Political pressure for regulators to go easy on poor little community banks that got snookered into making those stupid loans...

From Calculated Risk:

Tonight from the WSJ: Bank Crackdown Draws Criticism Politicians are putting pressure on regulators to go easy on small community banks across the U.S. ...

[snowsislander]

This article is correct in its assertion that we did act in such a manner. Mr. Bernanke is actually an expert on what Japan did to save itself during the last twenty years, and is implementing much of it here. Japan navigated the bursting of a massive bubble far more successfully than history would have suggested, and there are lessons to learn from that navigation.

However, the article is wrong in its implication somehow that Japan doesn't still have a formidable foreign net asset position: it's still the world's wealthiest country with respect to net foreign assets, with about twice Red China's net foreign assets.

Japan's net international investment position was still over $2 trillion in assets at the end of 2008, even with massive losses in capital markets around the world, massive real estates valuations down, and the incredible strength of the yen.

[1776 Reborn]

They are suffering from the same thing we are, an aging population with a diminishing pool of tax payers to support them. The epitaph of abortions and family planning?) How does that figure in with the “Greenies” that don’t want any new humans to be born to pollute the world?

[RC2]

Since they don’t want any new humans to be born, I guess us old retired folk will have to come back and get the work done...........again. It will cost them this time because we ain’t workin for nothin.

When looking at our politicians, I can see why Japan feels the way they do. Let the people of this country and Japan, do what they know best, leave out the politicians, and things will turn around.

[1776 Reborn]

I hear ya, but interviewing with a 30 year snot nosed kid doesn’t work out very well either! You know too much and they don’t want you on their health plans, at least for the present.

[RC2]

I see it across the industry. The older people don’t know a dam thing. That’s why I got out of electronics and retired. The young bucks wouldn’t listen to the older engineers. Different culture today and a total lack of respect. They had real good ideas for new designs, but didn’t have a clue how to get there and wanted to redesign the wheel. The same goes for our government. They don’t know a dam thing, no good ideas and if they did, they wouldn’t know how to get there.

[1776 Reborn]

I know it well, been there also...

[ChinaGotTheGoodsOnClinton]

Economic Downfall of Japan

Ever wonder how Japan went from the bustling economy that it was to the economic basket case it is today?

As Randazzo points out it was three things: bailouts, taxes and Government regulation.

http://www.reason.com/news/show/130626.html

[FromLori]

There is a lot of truth in the phrase those who don’t learn from history are bound to repeat it.

[RC2]

At first it was hard for me to handle. You start to question your own abilities. Then I came to a point, after watching some of the young kids, I wasn’t wrong. Then you get to the point that you quit, sit back and watch them fail. Retire and enjoy life.

I know one company, today, that has four circuit board designers working on one design. In my day, I only had one designer work on it. If he couldn’t handle it, I would find someone else. That company is going broke today and being bought out. My designers, years ago, made $60K a year. Today, they are making $160K a year and can’t get the job done.