Interesting Bloomberg article:
http://www.bloomberg.com/apps/news?pid=20601213&refer=home&sid=a8L00oInO1YM
"The U.S. is unwilling to endure ``creative destruction'' that would rectify the market excesses caused by its debt-fueled boom, Eveillard said. Asian economies were forced by the U.S. and the International Monetary Fund to take their ``medicine'' after their market crises in the late 1990s, he said. The Japanese endured a decade of economic stagnation after the country's 1980s asset bubble burst, he said.
``The Asian solution would mean you correct the excesses and it's very painful for a year or two or three, or the Japanese solution is stagnation '' Eveillard said. ``They don't want the South Korean solution or the Japanese solution, so they come up with their own reflation.''
Note that after the 18 month recession is Asia 10 years ago, the region recovered pretty quickly and has done fine since then. Whereas Japan had a less severe recession in the early 90s, but then had an entire decade of lost growth and stagnation - in Japan they call it the lost generation.
The US government for some reason does not want 18 months of severe recession, and 8 1/2 more years of high growth. Rather they want a decade of depression or stagflation. Idiots.
http://www.bloomberg.com/apps/news?pid=20601213&refer=home&sid=a8L00oInO1YM
"The U.S. is unwilling to endure ``creative destruction'' that would rectify the market excesses caused by its debt-fueled boom, Eveillard said. Asian economies were forced by the U.S. and the International Monetary Fund to take their ``medicine'' after their market crises in the late 1990s, he said. The Japanese endured a decade of economic stagnation after the country's 1980s asset bubble burst, he said.
``The Asian solution would mean you correct the excesses and it's very painful for a year or two or three, or the Japanese solution is stagnation '' Eveillard said. ``They don't want the South Korean solution or the Japanese solution, so they come up with their own reflation.''
Note that after the 18 month recession is Asia 10 years ago, the region recovered pretty quickly and has done fine since then. Whereas Japan had a less severe recession in the early 90s, but then had an entire decade of lost growth and stagnation - in Japan they call it the lost generation.
The US government for some reason does not want 18 months of severe recession, and 8 1/2 more years of high growth. Rather they want a decade of depression or stagflation. Idiots.
