'..the US have cloned Japan's failed policies .. Today the world's new Zombie Bank center is no longer Tokyo, but New York.'<blockquote>'..people will tend to underestimate the 'stickiness' of the down cycle in real estate. However, there are a number of historical examples of which the most pertinent is probably Japan's experience since the early 1990's that show that burst mortgage credit and real estate bubbles are quite prone to lead to a persistent secular contraction, especially if the government continually intervenes in the market to prevent it from reaching clearing levels. As it has turned out, the US administration and the Federal Reserve have in concert repeated precisely what Japan's government did when faced with a collapsing housing bubble. Not 'precisely' in the sense that the interventions are similar in all details, but in terms of the scope and intent it certainly appears that the US have cloned Japan's failed policies .. Today the world's new Zombie Bank center is no longer Tokyo, but New York.
..
One of the reasons why we have decided to comment on US banks is because there are many analysts –
inter alia the quite prominent bank analyst Dick Bove – who keep saying that everything is just hunky-dory with US banks and recommend that investors buy their stocks. So far this recommendation has been an utter disaster..'
- Acting Man,
Update on US Banks and the Euro Area.., November 24th, 2011</blockquote>
Context<blockquote>
'Ireland .. debt relief..' - '..looking at ways to reduce the debt..'Europe versus the US ('..has nearly bankrupted itself..')</blockquote>