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He's not saying buy stocks after any crash, just after this one. The Japanese crash was a unique one because a corrupt old boy network of companies holding one
by ksvs 18y ago
He's not saying buy stocks after any crash, just after this one. The Japanese crash was a unique one because a corrupt old boy network of companies holding one another's stock and banks refusing to write off bad debt caused the fall to be artificially prolonged.
- mynameishere 18y agoGood point. And in Japan the government responded with massive public spending and rate reductions.
- asdf333 18y agohaha good one.
- richcollins 18y agoWhat do you think is happening now? The banks aren't willing to write off bad debt if they can stay afloat. As a result, they aren't willing to lend to each other. None of the banks wants to make a loan to another bank that will just go under due to their holdings of bad debt. If the banks holding bad debt were allowed to fail, this would all be sorted out much faster.