The Nikkei 225 stock index closed today at 8,296. That was a level first reached in 1983. Japan had a real estate/debt bubble in 1990. They spent decades propping up zombie banks, keeping interest rates at 0% and producing worthless stimulus plans. Their national debt is now over 200% of GDP. Their economy is a shambles. Their demographics worsen by the day. And their stock market is at 30 year lows – down 80% from the 1990 peak.
Does the Japanese story remind you of another country? Think real hard. Is their another country with a real estate/debt bubble that popped? Is there a country who has chosen to prop up insolvent banks on the backs of their citizens? Is their another country that has dropped interest rates to 0%? Is there another country that has wasted trillions on stimulus pork? Is there another country that has a demographics/entitlement crisis? Is there another country whose debt to GDP ratio has passed 100% and is rising at an astounding rate? I’ll give you a hint. Their stock market peaked at 14,000 in 2007. I wonder what level it will be in a few years from now? Ask someone from Japan.