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While the author is spot-on that stock prices need to come down dramatically, I think he is very wrong about thinking we will become the next Japan. Japan has very limited resources, nearly no physical room for growth, and very little immigration. (Believe it or not, immigration -- hated by Paleo-conservatives and Buchananites alike -- fuels great growth in an economy) Additionally, we do not have nearly the level of socialistic interference in our corporations as Japan does, although in this regard we seem to be striving for parity.

The best things we can do to reinvigorate the economy are to A) Lower taxes where possible, B) Shrink government ruthlessly, C) Sell or give federal land to private citizens.

Also the commercial real estate market in Japan was a big part of the bubble and a cause of great pain to Japanese banks. Commercial real estate in the U.S. takes its knocks and gets up to do it again. I AM a bit worried that the GSEs are the next big disaster. But that don't make us Japan.

Does anyone know how the indexes are relative to long-term trends. I was never a chartist, and I'm sure this measurement isn't simple (PE ratios will still suck when we hit bottom, for example) but would like to take a shot at figuring out if we have crossed below the trend line.

I still remember all those Japanese tourists swarming L.A. when the economy over there was still good. One day I was walking past Lawry's Prime Beef restaurant on the corner of La Cienega and Wilshire when a Japanese guy holding an aluminum foil bag came walking out of there and up to me with a very puzzled look on his face.

"Waffo doggee bak?" he asked me.

"Huh?" I replied.

"Waffo doggee bak?" he repeated.

Then it sunk in. He was referring to the bag he was holding and he was asking me what a doggy bag was for. Obviously they ordered way more Prime Rib than they could eat and the restaurant gave him and his colleagues doggy bags to take the prime rib home. A light went on in my head and I bowed elaborately to the Japanese and gave this response:

"Ah so! Ancient American custom. They give you doggy bags and then you give to first person you meet."

I held my hands out and the Japanese enthusiastically deposited their doggy bags into my greedy hands.

"Ah! Tank you berry much," they exclaimed in gratitude for the honor I bestowed upon them for allowing them to give me their doggy bags.

I then quickly proceeded home and had the best Prime Rib dinner (with lots leftover for the next day) that I ever ate.

> A) Lower taxes where possible, B) Shrink government ruthlessly, C) Sell or give federal land to private citizens.

Pretty much spot on I'd say.

Now this Eliott guy I don't understand - put the brakes on capitalism?? Isn't capitalism the driving force of our being where we are, the global superpower, high standard of living, and so forth?

But hey if all the money disappeared tomorrow, our abundant natural resources are as good as gold - the US would still eat well - that's more important than solvent banks.

The strategery is simple - people with land and guns will not starve.

Not sure how the UK would fare in that regard.

Dave in Eugene

No one is against reasonable immigration at levels that will not result in replacing the native population in a generation. Just think of the cost of the six hundred thousand elderly immigrants brought here, who never worked a day in the US and now get SSI. In a few years they will number over a million. The money supporting them could be spent on your family. Or are you too slow to see the connection?