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What really caused Japan's Lost Decade? | 54 comments (54 topical, editorial, 0 hidden)
Re: What really caused Japan's Lost Decade? (4.00 / 3)
When the economy was loaned up and could not take more debt, banks created some kind of "derivatives" to speculate then on existing loans. I don't see how these derivatives could be the problem. They are not at all real economy and have no cost effects on production of wealth.

Derivatives are credit instruments, just like loans. The fact that they may not be accounted for as debt doesn't mean thay are not. And the problem is not with the real economy but with the monetary economy, "real" economic stagnation being a side-effect of monetary stagnation due to decreasing profits.

The brainless should not be in banking -- Willem Buiter

by Carrie (migeru at eurotrib dot com) on Wed Mar 24th, 2010 at 06:23:11 AM EST
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What really caused Japan's Lost Decade? | 54 comments (54 topical, 0 editorial, 0 hidden)
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