An analysis of the Japanese asset price bubble and its similarities to today’s asset-driven economy

I have uploaded a podcast for September 25, 2018. Click here to go to the show archives page to listen and look at the relevant links or you can listen on the link below. You can also right mouse click here to download the podcast.

-I worked at Mitsui Trust Company from 1990-1993 and witnessed the results of the bursting of the Japanese asset price bubble in real time. My observations from that experience.
-The arrogance of the Japanese corporations and their officers during their bubble years and the arrogance of today’s wealthy are similar. They became drunk and complacent.
-Many of those who promote and write about government intervention in the market place are in their 30s-40s and were products of their educational environment. They were indoctrinated with macroeconomic textbooks that promoted government intervention.
-Japanese land prices rose for the first time in 27 years as an influx of foreign tourists boosted demand for hotel properties and shops
-Japanese mortgage rates near historic lows (about .9%) yet prices continued to fade.
-I am seeing similarities with Japan and what has happened in the US over the past few years. The Japanese asset bubble was characterized by rapid acceleration of asset prices and overheated economic activity, as well as an uncontrolled money supply and credit expansion. More specifically, over-confidence and speculation regarding asset and stock prices were closely associated with excessive monetary easing policy at the time.
-My concern is that the next time housing and stock prices fall low interest rates won’t be able to right the ship.
-Egged on by extremely low rates, US companies have piled on a record-setting $6.3 trillion of debt
-DC-based sandwich chain declares bankruptcy and closes all stores over owner’s ties to Trump.
-Why I chose real estate rentals as a business. These are the same reasons why we should choose our future endeavors.