If compared with other world stock indices like dow jones, hang seng it is found that nikkie is falling every year. it came down from 38000 to 16000. I cant understand why this happened.
About 1990 Japan began having huge banking problems, very similar to what the US is beginning to experience. And rather than the banks taking quick writedowns on their bad loans, they resisted writedowns and allowed borrowers to forego paying interest or principal for many years. As a result, the banking system stopped working altogether, and economic growth stopped, and companies’ profits declined. The US would do well to avoid doing the same thing here…the point is for those parties that ignored risk for taking / making stupid loans over the last several years to face the music now, however painful that might be. D