Friday, Apr 27, 2007
A Frightening Glimpse of What Awaits Us
Bloomberg: Bank of Japan Slashes Inflation Forecast, Keeps Rates Unchanged
Property prices falling but still out of reach. Prices of consumables are flat or falling, which prevents interest rate cuts. No, this is not yet another doom-monger's pessimistic vision of Britain's future - it's a description of Japan, today!
Posted by royston @ 09:50 AM (184 views) Add Comment
6 Comments
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1. Rimmer said...
Not sure what this means exactly other than "Stagflation" is it really a bad thing? Japan seems to be doing just fine?
2. sold 2 rent 1 said...
royston,
You said "Property prices falling but still out of reach"
but
"Commercial land prices in Tokyo, Osaka and Nagoya jumped 8.9 percent last year, with values in some parts of the capital soaring as much as 46 percent."
Rising land prices means rising debt levels going forward.
Not even Japan will escape the k-winter
3. fahrenheit451 said...
Japan may be on this planet, but the mindset of their land and housing is still on another world. The home of the 100 year mortgage is just unrealistic. It always was and until they get a grip on the fact that the Feudal landlords are ripping them off, nothing will change. Unfortunately "the powers that be" are probably too frightend to do anything. Nothing short of a complete revaluation of all land and housing will sort out the problem. And that will bankrupt the system even more. It's a mess. Hey perhaps we could send GB(H) over there to sort things out and relieve us from paying for his £100,000 per year pension. And in return they could print more monopoly money for us to spend.
1 Yen = 0.0056 Euro = 10.84 Italian Lira (1 Euro = 1936 Italian Lira) probably ...
4. dugmug said...
Royston - aren't Japan's property prices finally going up after 15 or so years of slump? And the BoJ is being prevented from RAISING rates, not cutting them - they're virtually zero already dude.
5. royston said...
On "interest rate cuts", sorry, I meant "interest rate rises".
Re whether property prices are rising or falling, it depends on your reference point. True, they seem to have turned in recent months and have risen. However, in the context of Japan's 10-15 decline, this is a very small blip. I am interested in the parallels with the UK. I think we are now where they were in about 1991. From that point of view, we are in for a really long drop!
6. dugmug said...
A really long drop - bring it on!