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Forgot who said it, but there are 5 types of economics in the world, free market economy, planned economy, mix economy, Argentina, and Japan

The collapse of Japan's bubble was predicted by UK economist Fred Harrison in his 1983 book 'The power in the land', he also predicted the UK and US early 90's recessions in the same book. In 1997 in 'The chaos makers' he also predicted the US and UK crash to occur in 2008. ''By 2007 Britain and most of the other industrially advanced economies will be in the throes of frenzied activity in the land market equal to what happened in 1988/9. Land prices will be near their 18-year peak, driven by an exponential growth rate, on the verge of collapse that will presage the global depression of 2010. The two events will not be coincidental: the peak in land prices not merely signalling the looming recession but being the primary cause of it." And if you're wondering, next crash should be around 2026/7. It's not hard when you look at previous cycles.

The lesson is don't invest in companies with a PER of 60+.

WHY IS THE MUSIC ALWAYS TOO LOUD ON THIS CHANNEL

My family and I went to live in Japan in the last few months of the Japanese bubble. During that brief period the appearance of affluence was everywhere, and it felt great to be living for the first time in a society that was not forever plagued by worries about the economy... One of the moments that spelled the end of the "good times" was when, with soaring property values fuelling a collateral-fed borrowing and speculative boom, the them Prime Minister Toshiki Kaifuu announced an intention to bring house prices down to within the reach of the annual salary/wage earner... It didn't take long for the prospect of shrinking collateral values to impact the stock market. One might hope that the lessons of that time would have been permanently learned. Sadly, history suggests not...

I lived in Hawaii during the Japanese property bubble and after it burst. I had always wondered how Japan got to those hundred year mortgages we heard about. This video is a much better explanation than we ever heard stateside when we were trying to figure out how Japanese tourism had completely dried up.

I heard that real estate and cabaret clubs were really popular back then too

I lived in Japan during the bubble years on the way up and watched it in real time as it came back down. It really was wild. Really wild. Makes me think of how SF must have been like in the gold rush days. He missed out on the whys/hows/and wherefores of it and what brought it down. But did a nice job on going over some of the machinations of what happened. I'd give him a solid 80 on it.

From what I understand, Japan is still a powerhouse in manufacturing , it is a mercantile nation, uses automation profusely, has an enviable record on quality of life, and labor versus capital is not antagonistic. So German, the Scandinavian Countries, Canada, and Japan practice some form of social contract. So much in fact m during the pandemic Japanese and German industrialists, and their governments, chose to pay workers to stay recluse. You can’t make such a claim in behalf of the US, and I doubt China or India’s counterparts provided something equivalent. True, the Japanese were sandbagged by Americans. Not only the former meddled with the Japanese Central Bank, a vital cog in their economic engine, they went as far as to nearly bankrupt a Japanese Industrial Giant , Toshiba , back then on Flat Screens. It was a big hoopla during the early 90’s. Toshiba was targeted and penalized unfairly for their competitive advantage. Yet, Japanese industrial Keiretsu oriented giants expanded abroad. The 80’s were the watershed moment when Lee Iacocca, then at the helm of Chrysler , challenged Japanese automakers to fair competition by opening up plants in North America. Not only Japanese automakers followed on the dare, they overwhelmingly succeeded. Further , they expanded into Latin America. Yes, the Japanese population is aging, their work ethic still superlative , they are knee deep in debt at the government level. Oddly enough , the average Japanese investor holds more national treasury securities than their American counterparts, and their Debt to GDP is horrible. Yet, people from the world over , given the chance, will want to live in Japan.

Life inside a economic bubble is so blissful

looks pretty much like what the USA is experiencing now

Well the Japanese ‘“miracle” wasn't much of miracle but a carefully planned plan from some few politicians to hold the ¥ to $ ratio at 360/1 so Japanese firm could export everything cheaply to US-markets for three four decades and then a real estate boom happen in the 80s that did burst in the early 90s and have in a clinical stagnation since.

Did they drop the requirement to wear a Hawaiian shirt?

Wow, I'm pretty baked and that ad at the beginning really messed with me. I totally forgot what video I clicked on and was wondering why in the world I chose to watch this video.

Guys I just want to say this channel never interacts with its English viewers, there is a lot of stuff we want changed but they will not listen to you here

Thats what happen when economy is solely based on real estate and stock market.

*Japanese economy in the late 1980s. This development involved fundamental economic restructuring, moving from dependence on exports to reliance on domestic demand.*

"Housing market completely unaccusable for young people". Sounds familiar (European)

Lesson: western economic system is not as good as it seems. Probably Eastern countries should throw it and write new one.

2:00 for the actual video and skip the ad

@7:24 I'm really starting to think that I should introduce these two guys to my parents, as we have been seeing each other for a while now.

5 ads breaks, cancer of youtube

That's some deep Yakuza lore there

The plaza accord is the main reason Japan got collapsed economically.

I am from India. I like this channel very much

Just today, the Nikkei index just surpassed its 1989 peak closing value of 38915.87, closing at 39098.68.

I'd love to see a video addressing the Canadian real estate bubble.

china has draw lessons from the plaza accord, predicting this might happen to them, they visited japanese officials who signed the plaza accord in the early 2000s, and now the chinese government is facing similar front with trump's trade deal.

3:02 Josh mentioning all the electronic products he is too young to know

What the hell is Zytech? I can't look it up.

I graduated in 1988 , and had no idea that this was going on.

Theirs some similarities to this with what's happening to the US now, cheap money, with the stock market at a all time high, while the actual physical economy is at a all time low.

You assume people learn from history. News flash: They don't. We love to repeat history's past mistakes.

We in Canada are doing the same in the past 10 years. Very low interest rate caused borrowing to skyrocket. Real estate price is sky high plus foreign buyers have invaded Canada many from China. Our American neighbour had their buble burst back in 2008 and now the bubble is full blown again with the stock market at high level during a global pandemic lol. Stock market crashed back in March in the beginning of Covid pandemic but it's back up already - full bubble lol. Waiting for it to crash again lol.

Bank : You want to go in dept? Japan: Yes.

keynesian economics period

Am I missing something? I've never heard "Nikkei" pronounced the way it is on this video 🤔

The video content was great as always, but the amount of ads interrupting the video, combined with the amount embedded in it made feel like I'm watching a commercial break... Is it really necessary?

You are more pleasing to watch than the other new guy :) Keep it up!!

Despite not being into economy, I enjoyed this video a lot

This video came out one year too early. Should be now the right time.

Meanwhile, back in present day... ...Nio generates about 1% of the revenue of Toyota, - but has an evaluation of nearly 40% of Toyota... ...Tesla is trading at a P/E ratio of around 1200 ...and Bitcoin, an asset with arguably no underlying value at all, has increased in price by more than 5 times over the past 12 months.

Thanks for the video.

YEEEESSSSSSSS a video about my favourite topic! For more information, watch or read "the princes of the yen" from the excellent book by Richard Werner on Japanese post war economy

I feel like half of this video is just flashy cuts , title cards and stock video of modern japan with no context. Guys, people aren't dumb, you can present the information in a straightforward way.

While this is a good explanation of the bubble & burst, Japan's continuing economic problems stem from a much more simple issue; population. People are the biggest drivers of an economy. An economy can maintain steady growth if they, (A) have a steady population growth rate, like with the US, or (B) lift people up from lower economic value(poverty), China. Japan's population is straight up, decreasing, with a severe aging problem, and on top of this, by the time of the Japanese bubble, the population was already fully developed (no one to lift up from poverty).

I would really like to see an episode that explains how countries such as Germany and Japan became such powerhouses after the dreadful destruction they lived during WW2

video starts at 2:00 I almost left

ahhh 1980s and 90s the Golden age of Yakuza. gotta respect that.

The one and only leason is dont trust america.... Cause they did all thing to maintain their first spot. The example is the plaza accord. And japan can reject this accord. They were to dependent on the US military..

Very nicely explained

1:50 is when the video actually starts.

Great information but the music felt distracting at times. I think it's bc the sound volume just shoots up when he's not talking; something at a more consistent level would be better I think. The music choice isn't my favorite either but that might just be difference in taste.

The question is not can we but will we. if history is a guide, the answer is, sadly, no.

Dear admin, also make a video on upcoming Chinese economic bubble which is going to burst soon

I strongly suggest this documentary on this topic: kzfaq.info/get/bejne/pptxlpqS1cWxcY0.html Visual Politik miss the main cause behind this bubble and burst. The central bank of Japan was controlled by pro-Americans neo-liberals that created this disaster on purpose. They were trying to force the government of Japan to drop it's window guidance policy, deregulate its economy and adopt austerity. To punish the government, they let the economy collapse by preventing private banks from creating new money. While they could have given a realistic quota to the banks through window guidance policy and therefore prevent the worst, but they needed a big shock to force structural change on Japan government. In the end, American venture capitalists get a huge discount on japan real estate.

Thank you for the video!

Like ur shirt John, looks suave

Yakuza zero bring me here

You have no idea how much this video helped me with my bachelor's degree. Thank you so much!

I don't get it. This is a politics channel. It's not for kids. What's with the idiotic emojis in the video names? Who are you trying to captivate? You think teenagers are interested in Japan's economy? You're just pushing away more invested and interested viewers with this very unprofessional look

Fantastic video. So clearly explained I only had to rewind once to understand something. More, please.

You should read "The Accidental Superpower", " The Absent Superpower" and "Disunited Nations" by Peter Zeihan.

The lesson is what goes up must come down

Am I the only one who sees this as a warning to current corona borrowing spree?

That Wall Street Journal quote just before the crash is priceless. Economics isn't a real science folks.

hey im just wondering what your sources are about this :)

Japan is getting too bitter - it needs more Suga

Nearly two minutes of advertising for “finimize” on a 15-minute video is ridiculous: I won’t be watching any more of your channel, let alone subscribe to it!

one of the best explanations thank you for making the video

Just imagine witnessing property value go up by x3 in a few years.

Awesome video thanks! Wish you went into a little more detail after the bubble burst but otherwise thanks. Very enlightening.

Robert Lighthizer was involved heavily in the negotiations of the plaza accords.

Stock market is not an indicator of a country's economic strength.

Very thorough video!

Great vídeo

Great video! I came from the Spanish channel, and this is as good as the other, I´ll support :)

Thank you so much! Your content is fascinating. I don't how it happened but I'm from Poland and hellllll... I don't know how you appeared on my list. THE INTERNET IS HAUNTED HAppy haLOween

Brave decision by Japan to help slow the spread of COVID. Let's all pledge to reward them for their selfless behavior in the coming year by buying Japanese products and planning trips to Tokyo and other Japanese destinations. #thankyoujapan#domoarigatojapan #domoarigatotokyo .

Thank you!

Someone can put subtitles in japanese?!!! I'm curious what japanese have to talk about the old times of financial crisis's and today international healthy crisis.

Don't forget that japan would overtaken the United States before 2000 but of this bubble put an end to it! Iam an Indian but love both India and Japan. 😀

Everyones criticizing china for devaluating their currency...While US sitting there like it is pure innocent

Thats a Dank soundtrack. Where can i throw my money at to obtain it?

The most clear explanation that I've come across of the Japnese bubble. I think it's sort of like a vehicle that is running at an ever increasing speed and there seems to be no simple and effective way to stop it soundly.

when a certain tribe of people came with innovative financial vehicles.

You know when you're in a bubble. What you don't know is when it will burst

Dude just ripped all footage off from a single video here on YT without credit.

The question is not `can we draw any lessons ` but will we ?

Do not incentivize stock buybacks. Today. The leaders of a company have their options and incentives to buy back companies stock to make more money. Japan showed us this does not end well

Honestly, Yakuza and 80s Japanese songs make me wish i was around that time living on Japan, sounds like the best era of humanity's story or one of the most interesting that are also actually suitable for someone to live through it But then i would like to return to the current times in my own country...

Central bank=artificial economy

This sounds exactly whats happening in the US today.

You took too long to explain. This all happened because Japan was forced to accept the Plaza Accords of 1985. Japan would have been the #1 economy already if it wasn't for it. . Americans are just so deceitful

And now the same is happening in the USA: Zero interest rates Money Printing Banks lending Share buy backs Company take overs PE Ratios of +50 The result is an increase in the value of shares, real estate and debt. So the USA can continue to print for a while longer.

Japan needs to shortened their workload and invest much more in innovation. I believe innovation was a major part of their success.

Same happening in China

if you denominate Japanese assets/real estate by a normalized USD, then the fluctuations arent nearly so great. I lived/worked in Japan 1980s thru the bubble. Got my seed capital from that bubble (thank you guys!)....but as for actual Japanese LIFESTYLE....it's not that different before, after, even 30 years later.....just the NUMBERs look extreme cuz we're denominating in a currency that's experienced major exchange rate fluctuation.... => and NO INFLATION for 20-30 years isnt necessarily a bad thing......nobody else has been ABLE to pull that off....even tho Japan didnt intend it, they got it....

FINALLY I've found a video in which the bubble causes are discussed critically! Bravo! So many crap videos on this topic that sound like an intellectually impaired pre-schooler's interpretation of the information on Wikipedia.