Japan Declares Depression - Is US Far Behind
Japanese Economists agree that Japan is officially in an economic Depression. Japan's problems started in the early 1990s with the collapse of its banking system. Although warned by the IMF and the Clinton Economic Advisers that the way to fix the banking crisis was to Nationalize the banks, strip away the bad assets, and sell off the good assets to new private concerns, Japan opted to continue feeding bailout money to the troubled banks thus keeping them on life support through the entire decade. These banks became known in financial circles as Zombie banks and were not effectively able to continue funding the growth of the private sector. What is interesting about the Japan Crisis is that the Clinton Financial advisers who were counseling the Japanese Government to Nationalize the Banking System have again resurfaced as the Obama Financial Advisers, yet the same recommendations that they gave to Japan are not being followed in the current US crisis. The sane solution that was rec...