“Martin Schulz, an economist at Fujitsu Research Institute in Tokyo, said the three main pillars that lifted Japan out of the so-called ''lost decade'' of the 1990s had crumbled — favorable exchange rates, overseas investment and demand, and old industry such steel, cars and chemicals.

''The recovery was unsustainable,'' Schulz said. ''It was built on a major global bubble, and now basically the economy is paying the price.''”

Now that the bubble is popping they are facing a lot of the same problems they always were. This is why I don't think we can successfully navigate to a lost decade but will have something more severe.

The “fun” has only just begun! Now that the “stimulus” bill most accurately and succinctly described yesterday as “vague and controversial” has been passed, never mind whatever future “stimulus” and “rescue” and “building for the future” measures are eventually sought; already what's on the minds of many is what the Dems will rush to do about health care. Stimulus, all done; now it's time for the next big, new thing, such as health care.

The USA on the other hand is a net Importer and so we can actually cut back imports and the people hurt are not Americans but rather people from other nations. There has always been a method to the USA for having a larger Trade deficit rather then a net Trade surplus. Its an insulator from world wide bad news.

Down goes a major part of the global economy and a major exporter.

http://www.economist.com/world/asia/displaystor…

Whats not working as intended is congress. BusinessWeek reported in its Nov. 14, 1994, issue that Fannie Mae called on Frank to exert his influence against a Housing & Urban Development proposal that would force the GSE to focus on minority and low-income buyers and police bias by lenders regardless of their location. Fannie Mae opposed HUD on the issue because it claimed doing so would “ignore the urban middle class.”

In 2003 then secretary of Treasury Mr. Snow said that Congress should eliminate the power of the president to appoint directors to the companies, a sign that the administration is less concerned about the perks of patronage than it is about the potential political problems associated with any new difficulties arising at the companies.

Franks response who as in charge of the oversight of Fannie and Freddie……….”These two entities—Fannie Mae and Freddie Mac—are not facing any kind of financial crisis,” said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. “The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.”

There is lots of blame to go around. This incessant finger pointing at Wall Street or the GOP is nothing more then trying to cover up the true culprits in this. Bush and McCain both tried to rein in Fannie and Freddy and was blocked every step of the way by democrats who wanted “AFFORDABLE HOUSING.”

Well it was affordable all right. If their heart beat. They got a loan. Even MSNBC last night aired a piece on the incredibly stupid lending practices that were Freddie and Fannie and the rest of the industry piggy backed them to the brink of bankruptcy.

Barney Frank and his Fannie Mae lover should be strung up for this. But by the gods he is going to get away with it because of a press that is more enamoured with Obama and still hoping for a Bush lynching then it is about gleaning the truth about anything.