March 12, 2003

IT'S ALWAYS DARKEST JUST BEFORE IT TURNS PITCH BLACK:

Pledge of 'action' fails to halt Nikkei slide (David Pilling, March 11 2003, Financial Times)
Japan's Nikkei average closed below 8,000 on Tuesday for the first time in 20 years as government promises of co-ordinated action failed to stem a wave of selling driven by fear of war and economic misery.

Keep in mind that Japan is a completely homogenous island nation, so you've got an entire society dying together. When Europe gets to this point there will likely be catastrophic violence between rival ethnic groups within each nation--some of which will be prospering (Muslims) while others fade--and between the various nations, with their centuries long rivalries, as some deteriorate faster than others. Posted by Orrin Judd at March 12, 2003 8:02 AM
Comments

The Japanese just sold a huge amount of cars to the United States. The Nikkei no more indicates what's happening than the Nasdaq, now down to about one-fifth its previous level.

Posted by: Harry Eagar at March 12, 2003 3:25 PM

Well Japan's export industry is incredibly strong but they can't keep going unless they stoke up domestic demand.



And the Nasdaq hasn't been in a decade-long slump.

Posted by: M Ali Choudhury at March 12, 2003 5:20 PM

It won't be long before it has.



I agree Japan has big problems, namely, low status of women, lousy housing, aging population and nobody there understands the concept of money. But it also has $5 trillion in savings, many denominated in dollars, and it'll take a long time to go broke.

Posted by: Harry Eagar at March 12, 2003 6:15 PM

Given that they had $10 trillion in 1996, it looks like it will take about six years.

Posted by: oj at March 12, 2003 9:23 PM
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