I have heard alot over the past 2 years about how land values and home values are ready to cease their slide. Bernanke, Paulson, CNBC, Bush, Bloomberg…have all made statements of a recovery. Many times have their recovery dates come an gone, yet new recovery dates continue to be guessed at.
I am not trying to be a pessimist, but it is important to learn from economic history. Japan is not too far removed from a very similar situation that we are in currently. The Japanese recovery is still ongoing and low interest rates and government stimulus has been insufficent to correct the problem. Below is a chart of the Japanese experience with the current US experience overlaid.
The Japanese experience is in blue and the US experience is in red. (for a larger chart, click on the image)
Happy Trades,
Jeff
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