power_of_foot
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- 4 Aug 2004
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What's the main reason that Japan is suffering from economic depression?
QUestion
- Thread starter power_of_foot
- Start date
Apollo
先輩
- 28 Mar 2004
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To make it very short........
Japan has had several economic crises within the last 2 decades. It started with the burst of the bubble economy in 1989, when the increasing property-value collapsed, leading to bad-performing loans from most Japanese banks and led to numerous bankruptcies. Actually, at the peak of the bubble economy, the property value of the Emperor's Palace was worth more than the entire state of California, and it would take 3 generations to pay off the price of an average apartment. This has, however, changed!
Today, the reason why Japan is still suffering from a financial crisis is due to the fact that most Japanese after 15 years of financial turmoil are not convinced the government are correct, when they are urged to spend their money. Despite the fact that the interest rates are at the lowest ever seen in the world, Japanese are not too keen to spend their money but prefer rather to save them, which leads to decreased macro-economic activity.
There you go!
:gohan:
Japan has had several economic crises within the last 2 decades. It started with the burst of the bubble economy in 1989, when the increasing property-value collapsed, leading to bad-performing loans from most Japanese banks and led to numerous bankruptcies. Actually, at the peak of the bubble economy, the property value of the Emperor's Palace was worth more than the entire state of California, and it would take 3 generations to pay off the price of an average apartment. This has, however, changed!
Today, the reason why Japan is still suffering from a financial crisis is due to the fact that most Japanese after 15 years of financial turmoil are not convinced the government are correct, when they are urged to spend their money. Despite the fact that the interest rates are at the lowest ever seen in the world, Japanese are not too keen to spend their money but prefer rather to save them, which leads to decreased macro-economic activity.
There you go!
:gohan:
