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Topic: Bubble economy


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  JAPAN'S BUBBLE ECONOMY
The bubble in property values would not have been significant except for the fact that the use of land as collateral for loans and the fact that the taxing authorities tend to use those peak prices in valuing property subject to the inheritance tax.
One of the scandalous incidents of the Bubble Economy is the discovery that the prestigous Industrial Bank of Japan (IBJ) lent 240 billion yen to an Osaka restaurant owner, Onoue (Nui), on the basis of forged certificates of deposits.
Although the Bubble Economy ended essentially in 1990 it wasn't until January 29, 1993 that a Japanese prime minister acknowledged that the "Bubble Economy" had collapsed.
www2.sjsu.edu /faculty/watkins/bubble.htm   (3551 words)

  
  Economic bubble - Wikipedia, the free encyclopedia
Economic bubbles are generally considered to have a negative impact on the economy because they cause misallocation of resources into non-optimal uses.
In addition, the crash which follows an economic bubble can destroy a large amount of wealth and cause continuing economic malaise as was the case of the Great Depression in the 1930s and Japan in the 1990s.
Some regard bubbles as related to inflation and thus believe that the causes of inflation are also the causes of bubbles.
en.wikipedia.org /wiki/Bubble_economy   (314 words)

  
 Economy of Japan - Wikipedia, the free encyclopedia
Japan's industrialized, free-market economy is the world's fourth-largest by purchasing power parity (PPP) after the United States, China and recently India.
Its economy is highly efficient and competitive in areas linked to international trade, but productivity is lower in areas such as agriculture, distribution, and services.
After achieving one of the highest economic growth rates in the world from the 1960s through the 1980s, the Japanese economy slowed dramatically in the early 1990s, when the "bubble economy" collapsed.
en.wikipedia.org /wiki/Economy_of_Japan   (1565 words)

  
 Final book of Daniel; true account of a reincarnated, angelified biblical prophet.
Bubbles, panics and crashes are a permanent feature of the economic cycle.
By the nineteenth century, the world economy was creating and popping bubbles with the speed of a giant jacuzzi.
But a feature of all bubbles, he emphasises, is the lethal combination of two flawed beliefs: first, that there is something new in the world, and second, that success is the result of this insight.
finalbookofdaniel.com /april23.html   (1175 words)

  
 ArgMax Economics Weblog: Bubble Confusion
Roughly from 1995 through the end of 2000, the Bubble Economy was known as the new economy, and nearly everyone thought it was a marvelous thing.
A stock bubble affects the economy similarly to expansionary monetary policy, so "bubble economy" may not be precise but it is descriptive.
The stock market and the economy are of course related, however, the implication from the language is that the economy somehow did not perform as well as we previously thought.
www.argmax.com /mt_blog/archive/000310.php   (1245 words)

  
 The Post-Bubble Economy: A Better World
At the height of the bubble, he pointed out that stocks would have to lose more than half of their value in order to restore a sustainable relationship between stock prices and potential profits.
Nonetheless, the economy grew quite rapidly from 1946 -73 -- the first half of the post - World War II era -- and most importantly, it was a broadly shared prosperity.
They have a right to be angry at the corporations who deceived them, and the politicians who aided and abetted the fraud while they cheered the growing bubble as a sign of economic progress.
www.ftlcomm.com /ensign/editorials/LTE/weisbrot/postbubble.html   (750 words)

  
 Bubble Meter
It is now the end of the beginning of the housing bust, in most bubble markets across the United States.
In many bubble markets peak real dollar prices were reached in late 2005 or early 2006.
Each home in foreclosure can have multiple filings as it moves from default status to bank repossession...."The jump in foreclosure filings this month might be the beginning of the next wave of increased foreclosure activity, as a large number of subprime adjustable-rate loans are beginning to reset," said James Saccacio, chief executive for RealtyTrac.
bubblemeter.blogspot.com   (1388 words)

  
 TomPaine.com - Overcoming The Bubble Economy
In the language of Arnold Schwarzenegger, this is a "girlie-man" economy.
It was inevitable that the stock bubble would burst and the crash was the cause of the 2001 recession.
Unfortunately, the pension shortfall and the dollar bubble are not the only imbalances threatening the economy.
www.tompaine.com /articles/overcoming_the_bubble_economy.php   (1110 words)

  
 The Role of a Central Bank in a Bubble Economy - Part IV
Thus, while it cannot be said that the bubble economy is directly responsible for all the economic hardship, it clearly bears a share of the blame.
Because bubbles in a domestic economy follow rapid internal dynamic processes, it may be difficult to harmonize the slow pace of international diplomacy on economic policy with the rapid developments in a bubble economy.
The bubble economy may be the result, in part, of financial deregulation which has the effect of directing bank credit into particular economic sectors, especially real estate.
www.gold-eagle.com /editorials/cscb004.html   (3590 words)

  
 Japan's Economy (High Growth Era, Mature Economy, Bubble Economy, Industrial Sector, Postwar Japan, Problems)
Following the collapse of the "bubble economy" in the early 1990's, growth in the GDP has slowed.
Influencing the slow recovery of the Japanese economy was the sharp rise in the value of the Japanese yen.
The primary characteristic of Japan's postwar economy is the 15-year period of high growth, beginning in the mid-1950's, that enabled it to catch up with the developed economies of Europe and the United States.
www.asianinfo.org /asianinfo/japan/economy.htm   (1363 words)

  
 JAPAN'S BUBBLE ECONOMY
The bubble in property values would not have been significant except for the fact that the use of land as collateral for loans and the fact that the taxing authorities tend to use those peak prices in valuing property subject to the inheritance tax.
One of the scandalous incidents of the Bubble Economy is the discovery that the prestigous Industrial Bank of Japan (IBJ) lent 240 billion yen to an Osaka restaurant owner, Onoue (Nui), on the basis of forged certificates of deposits.
Although the Bubble Economy ended essentially in 1990 it wasn't until January 29, 1993 that a Japanese prime minister acknowledged that the "Bubble Economy" had collapsed.
www.sjsu.edu /faculty/watkins/bubble.htm   (3491 words)

  
 frontline: dot con: historical perspectives: famous bubbles | PBS
Here are five examples of historic speculative bubbles: the Dutch Tulipmania (1634-1638); the Mississippi Bubble (1719-1720); the South Sea Bubble (1720); the Bull Market of the Roaring Twenties (1924-1929); and Japan's "Bubble Economy" of the 1980s.
The bubble burst in May 1720 when a run on the Banque Royale forced the government to acknowledge that the amount of metallic currency in the country was not quite equal to half the total amount of paper currency in circulation.
The stock market bubble was fueled by a Japanese corporate invention, known as "zaitech," or "financial engineering," by which speculation became an integral part of corporate earnings statements.
www.pbs.org /wgbh/pages/frontline/shows/dotcon/historical/bubbles.html   (1958 words)

  
 Growth in the Post-Bubble Economy (2003-17, 06/20/2003)
The extraordinary burst of investment during the late 1990s coincided with the emergence of a major speculative bubble in the U.S. stock market—itself fueled by the very same optimistic projections about the future.
Job losses in the U.S. economy have continued to trend upward for more than a year after the presumed end date of the 2001 recession—yet another atypical pattern relative to the average recession.
Alternatively, in the aftermath of what many consider to be the greatest speculative bubble in history, it is quite possible that investment is being restrained by fundamental factors that will take longer to overcome.
www.frbsf.org /publications/economics/letter/2003/el2003-17.html   (1686 words)

  
 Economic bubble   (Site not responding. Last check: 2007-10-20)
The price of the good then reaches absurd levels and the bubble is usually followed by a sudden drop in prices, known as a crash.
Economic bubbles are generally considered to be bad things because they cause misallocation of resources into non-productive uses.
Another important aspect of economic bubbles is their impact on spending habbits.
www.sciencedaily.com /encyclopedia/economic_bubble   (264 words)

  
 US economy: the bubble has burst   (Site not responding. Last check: 2007-10-20)
The basis for the upturn in the US economy in the 1990s and the initial growth was the dramatic restructuring of American capitalism in the late 1970s and early 1980s, and to a lesser extent in the early 1990s.
By the mid-1990s for these reasons the upturn in the US economy appeared to be running out of steam, as the effect of the rationalisation at the turn of the decade worked itself out.
But what is clear is that the bubble of the last five years has burst, and that from now on American capital will have to grapple with its real problems without the aid of the financial hysteria we have seen recently.
www.labournet.org.uk /so/42useconomy.html   (2278 words)

  
 ZNet | Economy | The Post-Bubble Economy: A Better World
This is the beginning of a new chapter of American economic history: call it the post-bubble era.
Contrary to popular misconception—which is reinforced daily in the business press—the health of the stock market is not the same as the health of the economy.
Nonetheless, the economy grew quite rapidly from 1946-73—the first half of the post-World War II era—and most importantly, it was a broadly shared prosperity.
www.zmag.org /content/Economy/weisbrotpb.cfm   (707 words)

  
 Dark Side of Post - Bubble Economy   (Site not responding. Last check: 2007-10-20)
Indeed, the economy is at a dreaded transitory stage.
So the economy could be headed for another slowdown and the Fed may not be able to do anything about it.
Reducing spending, in the short run, actually slows the economy down in most cases (the long run effects are usually positive) but if you reduce $50B in compliance costs, that's pure gain.
www.freerepublic.com /focus/f-news/790374/posts   (2326 words)

  
 Online NewsHour: Bubble Economy?-- May 8, 1998
And some economists have begun to refer to the economy as a bubble, which could burst on the first signs of bad economic news.
After all, if you look at our economy we've been in in 15 years of expansion interrupted only by seven months of recession since 1982, so we've been in recession in our economy four percent of the time over the last 15 years.
We have a global economy with a couple of billion people around the world now operating in the market economy and wanting to increase their standard of living and our companies have a chance to sell into those markets.
www.pbs.org /newshour/bb/economy/jan-june98/bubble_5-8.html   (2060 words)

  
 The Japanese Bubble Economy by Mark Thornton
Experts tell us that the Japanese and their economy are very different from the U.S., and that their bubble and policy response to its crash were likewise different, but while there certainly are many important differences between the U.S. and Japan, the technical features and new-age thinking are strikingly similar in both bubbles.
Ignoring the economic condition of scarcity and grasping the concept of an economy of perpetual unutilized resources is a precondition for new-era thinking, as well as a quintessential mistake of freshman college students taking their first course in economics.
In retrospect, the new-era thinkers of the Japanese bubble economy seem conceited and hopelessly naïve, but that is the power of bubbles to deceive.
www.lewrockwell.com /thornton/thornton24.html   (1659 words)

  
 How the Bubble Economy Burst - Global Policy Forum - Social and Economic Policy
Mention the Bubble Economy and it conjures up images of shredded documents and half-built Houston mansions, depleted pension accounts and executives being led off in handcuffs.
Many of the key people involved in the economy appear to have gotten so caught up in the euphoria, and blinded by the financial rewards dangled in front of them, that they stopped doing their jobs, or convinced themselves that the nature of their jobs had changed.
By the mid-1990s, the U.S. economy was awash in it, partly the result of the democratization of finance in the past two decades, which had driven up the percentage of American households that own stock from less than a quarter to more than half.
www.globalpolicy.org /socecon/crisis/2002/1113burst.htm   (1370 words)

  
 Asia Times - Asia's most knowledgable news source
The Fed's reliance on forecasting of the economy to set reactive policies is an act of abdication of its monetary authority.
His longer-than-necessary monetary easing was directly responsible for the debt bubble decade of the 1990s, from which the global economy has yet to recover.
Greenspan was referring to the debt bubble that fueled the dot com and telecom boom and subsequent bust, not to mention the rise of structured finance, derivatives, which could not have been possible without the explosion in the securitization of debt.
www.atimes.com /atimes/Global_Economy/FA10Dj01.html   (6470 words)

  
 Chairman Greenspan Speaks
"During 2001, in the aftermath of the bursting of the bubble and the acts of terrorism in September 2001, the federal funds rate was lowered 4-3/4 percentage points.
It remains to be seen whether the after-effects of a bubble can be overcome by this particular prescription, and this particular monetary experiment in liquidity and debt creation.
Another result of the Fed's attempt to "address the bubble's consequences" is the explosion in global debt.
www.rense.com /general47/chairmangreenspan.htm   (1098 words)

  
 The Role of a Central Bank in a Bubble Economy - Part II
The origin of the bubble economy can be traced to the G-5 Plaza Accord of September, 1985, an agreement designed, among other things, to coordinate economic policy in the major industrialized nations and to counteract protectionist forces.
The cost to the banks, which would not become fully apparent until after the bursting of the bubble, was that they were exposed to downturns in asset prices, as well as to the business losses that their borrowers would experience when conditions worsened.
Although the economy was racing and unemployment was a minuscule 2.2-2.3 percent during the Fall 1989, there were few signs of inflation; consumer prices were rising only at about 2.3-3.0 percent.
www.gold-eagle.com /editorials/cscb002.html   (1859 words)

  
 The Food Bubble Economy
The economy must be restructured at "wartime speed", Lester Brown says, because we have built an "environmental bubble economy", where economic output is artificially inflated by over-consumption of the earth’s natural resources.
Plan A – business as usual – must be replaced by plan B as a matter of urgency if we are to avoid the food bubble bursting, and with it, famine on a global scale, disease epidemics, social and political unrest, and wars.
Plan B means shifting from a carbon-based energy economy to a hydrogen-based one to stabilize climate change.
www.i-sis.org.uk /TFBE.php   (2290 words)

  
 Morgan Stanley   (Site not responding. Last check: 2007-10-20)
  For an economy on the brink of deflation, the case for a spontaneous revival in fixed investment continues to seem like a real stretch to me.   I am the first to concede that the capex outlook is absolutely central to the policy and financial market debate.
economy back to a sustainable 4% growth pace -- and hold it there for several years.
economy plagued by a lack of policy traction will be unable to complete the critical transition from subpar to rapid growth.
www.morganstanley.com /GEFdata/digests/20030627-fri.html   (1562 words)

  
 Morgan Stanley   (Site not responding. Last check: 2007-10-20)
Courtesy of the bubble -- both in the financial markets and the real economy -- there’s never been a business cycle like this in the annals of the modern-day experience of the US economy.
Air has been leaking out of the dollar bubble in the past few months, and I feel there is a good deal more to come on that count.
Inasmuch as this bubble popped when the US economy was closer to price stability, deflationary perils are all the more acute.
www.morganstanley.com /GEFdata/digests/20020805-mon.html   (8840 words)

  
 Rogue Missives - A Bubble Economy? by Jim Surowiecki
The deluge of American press accounts of the rise of Japanese economic supremacy, many of which took the paper wealth generated by the Bubble Economy as permanent, took the Nikkei and real-estate rises as evidence that things had fundamentally changed in the world economy.
The proximate cause of the bubble bursting was, at least in part, the introduction of futures trading on the Nikkei on the Singapore Stock Exchange (Simex), of all places.
The deeper point, though, is that the story of what happened to the Nikkei cannot be separated from the specific conditions of the Japanese economy in the 1980s and from the incestuous manner in which the Nikkei was run.
www.fool.com /Rogue/1997/Rogue970123.htm   (1959 words)

  
 Financial Sense Online Storm Watch Update for September 20, 2002   (Site not responding. Last check: 2007-10-20)
However, when malinvestments are made in the economy or when debt is used for consumption by the individual or the corporation, the asset is used up or depreciates leaving the liability the same.
The reader may be familiar with all of the recent discussions prior to September 11 on whether the U.S. economy was in a recession or whether the stock market had fallen into a bear market.
The stock market bubble, which is still with us, is the subject of Part III and the final chapter of Bubble Troubles coming soon.
www.financialsense.com /stormwatch/oldupdates/2002/0920.htm   (5499 words)

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