The final throws of the bond bubble
- Thread starter PohPoh
- Start date
just how long have japanese long bonds been a bubble?
(and japan is a lot less solvent than us).What information do I trust? Different methodologies ... thats the thing about statistics. Since when did savings rates have anything to do with bond rates in this global market ? As long as the US doesn't piss the remaining viability it has away (another war?), someone will buy our bonds, even if its not joe-blow.
Regardless, there's still plenty of stocks to sell to raise money for the bond bubble.
http://www.businessweek.com/magazine/content/03_23/b3836159_mz035.htm
JUNE 9, 2003
INTERNATIONAL -- FINANCE
Japan's Dangerous Savings Drought
Consider the figures. Japan's savings rate topped 20% of household income in the mid-1970s and clocked 14% as recently as the start of the 1990s. It is now no higher than 7%, well below that of France, Germany, and Italy. And when final calculations are in for 2002, it may drop as low as 4% -- close to the rate of that revolving credit society, the U.S. (table). So far, the Japanese government shows few signs of concern about the drop.
http://www.soumu.go.jp/index.html
For the first time in eight years, Japanâs household savings rate increased in 2006. According to a report released by the Ministry of Internal Affairs and Communications, the savings rate at households headed by a salaried worker averaged 27.5% last year, up 2.2 percentage points from 2005.