From the WSJ: "Hillary Clinton said she fears the U.S. is slipping into a Japanese-style economic malaise that will overwhelm the Federal Reserve's considerable powers.
"The Democratic presidential candidate said the U.S. government should be ready to buy troubled mortgages from investors and lenders to spur a recovery and avoid a lengthy period of stagnation because of unaddressed weaknesses in the financial sector."
Okay, now I will give you three guesses as to WHY Japan has been in a malaise for the past 10 years:
1) Japanese are lazy and the national savings rate is low.
2) Japanese businesses are non-competitive.
3) The government took on the burden of their banking crisis instead of letting the market sort things out.
The answer is 3. So Clinton, in all her economic wisdom, is proposing just the path the PUT Japan in its slow growth period.
Unbelievable.
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