Japan has followed
a traditional “Keynesian” approach to its crisis–running government deficits and on one occasion (2002)
drastically increasing base money (by over 30 percent in one year). When its Bubble Economy burst at the end of 1990, aggregate Japanese debt was equivalent to 162% of GDP–consisting of a 108% private debt to GDP ratio and a 54% government ratio. In 2008, aggregate debt was 259% of GDP–made up of a slightly smaller private ratio of 94% and a much larger government
ratio of 165%.
Debt to GDP ratio is 381% of GDP (with the private sector’s share of that being 290%). -- 10/08
November unemployment increase (unadjusted) 533,000, 6.7% (in December of 1974 there were 602,000 lost), October 320,000 (revised
up from 240,000, + 33%) and for Sept 403,000 (up from release of 264,000, + 52%). For
November manufacturing dropped 85,000 and construction 82,000. Factory jobs have
shrunk for 29 straight months and construction 17. Loss totals for the 3 months
1.256 million, and almost 2 million for the year—according to a December release at http://news.yahoo.com/s/nm/20081205/bs_nm/us_usa_economy_jobs_9.
Huffington Post blog December 7, 2008 on the job melt down, human losses—good reading
The Japanese stock market traded like a
“growth story”, all the way back to 1965 when the NIKKEI was at 1300 and the DOW
at 1000. In 1989 the DOW was around 3000 and the NIKKEI at around 40000; now (11/21/08) they’re both about 8300.
Gold raised from $20 to 35 in 1933-4,
went off the gold standard in 1971.
40% of Chinese manufacturing is foreign owned.
The Federal Reserve Bank requiring only 10% assets to be held, financial institutions.
Government makes up 21% of GDP compared to
just 3% in 1929.
Household debt rose from about 50% of a $3 trillion GDP in 1980
to over 100% of a $13 trillion GDP today.
The financial world's unprecedented accumulation of debt in relation to equity sometimes with over
$30 of debt for every $1 of equity, much of which is in the form of securities
From 2002 to 2006 housing values appreciated at the astonishing rate of 16% per year compared to only 3% for the 55 years between 1945 and the year 2000
Huffington post at http://www.huffingtonpost.com/mort-zuckerman/the-anatomy-of-the-financ_b_136829.html--Mort Zuckerman, October 22, 2008-
For 2004 the M! was $1.333 billion, the
M2 was $6,275 billion, and the M3 $9.275 billion.
Federal Reserve was founded in 1913
Severe economic downturns (decline in output
and rising unemployment) 1920-21, 1929-33, 1937-38.
Asian economic crash occurred in July of
1997, Argentina in 1999
went from a high of 381 on September 3rd
1929 to a low of 198.6 on November 13th, then to rebound to 294 in
April 1930, but thereafter to steadily decline to 41 on July 8th 1932, a decline of 89% from its peak. The run on banks occurred in Jan. of 1933 (Roosevelt took office in March).
The finance, insurance, and real
estate industries spent $200 million of lobbying in 1998. One result was the
Gram-Leach-Bliley Act (November 1999) which had several key deregulation clauses. One
key effect was banks trading in mortgage-backed securities, and collateralized debt obligations (structured investment vehicles).
Fairness Doctrine enforced through
the entire history of the FCC (and its precursor, the Federal Radio Commission) until 1987, when the FCC repealed it. The Supreme Court subsequently upheld it.
In 2007 Morgan Chase 2007 revenues were $146.9 billion of which $15.4 was profits after taxes, employees world wide
180,667, market capitalization $145.9 billion assets as of June 20, 2008 $1.78 trillion. Current (0/26/08) market capitalization
is $165.8 billion.