I thought that the 'modern' monetary policy was introduced by Reagan, with massive government spending (on military and corporate subsidies/tax breaks) and easy money for Wall Street. Coincidentally a lot of the supporters of Reaganomics are ex-Trotskyites and radicals. Maybe they know how destructive all of this really is and are still plotting the downfall of capitalism? The 'deep state'?
Meltdown? Some context required. End of 1989 Nikkei stood about 39000. Within 9 months that had halved. Over the next 22 years it halved again. At the low, financial district property worth 1% (one percent!), residential 10% of peak prices. However you look at it I reckon that was a meltdown!
Still if you blow a bubble .....it will pop in your eye. They entered a deflationary period 20+ years ahead of the rest. The consequences are daunting. Poor demographics often quoted but not 30 years ago it wasn't. Overall I'm sure the Plaza Accord and the subsequent currency adjustments had a big impact. Resets......reset everything.
The Brexit/EU nonsense rolls on but I'm disappointed that the UK media have not picked up on the impending next European banking crisis. The EuroStoxx Banking Index is on a precipice. Levels last seen in late 80s, during the GFC and the last Greek/Cyprus debacle the outcome of which was the current "bail in" process you mentioned. Italy is seriously trying to issue min BOTs (because it can't afford to repay in Euros) to meet its future obligations. that's the third biggest economy in EU. France now well above accepted deficit levels and Germany probably in a recession. Show me the door.......
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