Lesson from Japan's Lost Decade--Bill Fleckenstein

For those who have always maintained that a decade of declining real estate/stocks, combined with a weak economy, can't happen here as it did in Japan because America is not like Japan, I offer up the following, from an article headlined "Japan Parliament Passes Relief Bill for Ailing Banks" (October 13, 1998, New York Times):

"Parliament approved landmark banking legislation today that will allow the Government to nationalize failing banks, and political parties announced that they had reached a new accord to provide several hundred billion dollars in new money to try to revive the banking system and set the country on a path toward economic health. . . . The possibility of a way out of the financial crisis sent stocks surging today, with shares of the nation's banks jumping an average of 8 percent. The Nikkei index of 225 shares rose 5.24 percent, to 13,555.01, in a big comeback after last week's plunge." It's worth noting that even after a 3.8% gain last night, the Nikkei only stands at 11,920!

Can someone show me in chart form what happened after that?

NIKKEI 225 (^N225)

http://finance.yahoo...25&am...&q=l&c=

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actually it looks like the market took off for a few more years.

Edited by snorkels4, 21 September 2008 - 10:06 PM.