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Friday, October 10, 2008

WHY THE US FINANCIAL CRISIS DIFFERS FROM THE 1990S JAPANESE CRISIS

Today's Second Buggy Commentary

Found at the Marginal Revolution --- run by a flexible libertarian economist ,Tyler Cowen --- the bugged out stuf today replies to a short post that started the thread by Cowen.  Among other things, he said categorically that the US recovery from its current financial crisis will be dragged out for a decade . . . the length of time it took Japan to deal with its huge financial and real-estate balloon and bust.

Prof bug disagreed.  Strongly.  There are some similarities, of course, between the two crises, but the differences stand out starkly . . . and much to the favor of the US.  Click here for the original Cowen post and prof bug's rejoinder.