Wednesday, April 15, 2009

Japanese in the 90's

Dr. Doom Marc Faber's latest post led me to recall how it felt like in Japan during the so-called "lost decade".

I'd read recently somewhere that the price deflation during the lost decade in Japan was a myth. Maybe, but what I remember is indeed cheaper prices across the board - not just big ticket items like houses, condos, golf-course membership but everyday items. Food, drinks, clothes.

There was an unmistakable sense of relief in the society that they didn't need to keep running anymore, keep chasing the money, higher return, pricier condo, what have you. Sense of "Let's slow down here and take it easy." And that wasn't a bad feeling.