Ending U. S. Pension economic Bubbles

Ending U. S. Pension economic Bubbles

Ending U. S. Pension economic Bubblesusa lot of time spent in the last three years to discuss the balance sheet recession and the plight of the U.S. economy (NYSE: SPY). If the U.S. suffered its huge real estate bubble involved an even larger debt bubble. When that bubble burst bubble era debts were consumer service with post-bubble era cash left. The result is what has come to be known as the balance sheet recession. Although it is a rare phenomenon, it, AOS are not uncommon. Japan (NYSE: EWJ) is at the end of a 20-year balance sheet recession, which started with their own debt bubble and asset price implosion. And while I was Äôve to quickly compare Japan to the United States over the years, I think it, AOS important to recognize several distinctions that make our situation better. This is a budget balance sheet recession. The United States is suffering a crisis of household debt. Japan suffered a corporate debt crisis. The following table compares Richard Koo, AO Holy Grail of macroeconomics, the environment, leverage in the U.S. and Japan. As you can see, Japan, were grossly over-indebted company AO. It AOS not surprising that their deleveraging has lasted as long as it is.


Although U.S. households over-indebted, they remain Äôve made significant progress in recent years to improve its financial performance. Household debt to disposable income has fallen from 130% to 113% since 2008. So while homes are still substantial de-leveraging to have to do in the coming years, AOS is not unreasonable to assume that households in a position more and more the economic burden of the shoulder than to improve these relations and to normalize the balance sheets . Demographics are superior in the USA. One of the major hurdles for Japan in recent decades been a decline in the total population. While the U.S. is facing increasing demographic pressures as the baby boomers go into retirement, the general trends are still favorable. National Bank of Canada (NYSE: EWC) recently described the situation, ÄúIt is important to remember that Japan, AO deflationary problems caused by a decline in population of prime working age home buyers (defined as the number of people in the 20-to- 44-year-olds) were tightened. Unlike Japan, the United States a positive turning point for the respective age group. According to the U.S. Bureau of Census, the population of people aged 20-44 is expected over the next 20 years (13 million) will increase. Japan, for its part has been a decline of 6% for the cohort (or 3.2 million people). Au experienced by the U.S. government had to react quickly. The main difference was the reaction of the government. Now the U.S. has done much wrong in recent years in terms of strengthening the economy. The primary gripe that I have shown in recent years was the fact that the Fed and Congress is too focused on saving the banks and not saved Main Street. That was never a banking crisis. It was always a budget crisis. Therefore, much of the stimulus to savings banks have become relatively useless as directed. However, we have a fair amount of Main Street reacts help and so has done in a much faster way than in Japan. The following table shows that the U.S. reaction was in fact much more quickly than the Japanese approach: So the bad news that we are still remarkably similar to Japan (NYSE: EWJ), which means that economic weakness will continue for as long , as the recession persists balance and reduce consumer debt. The good news is that we suffer no more than two decades after the Japanese lost their