Article: Terrible twins? Economic parallels between America and Japan.(America's and Japan's burst bubbles compared)(Brief Article)

America's economy looks awfully like Japan's after its bubble burst

JAPAN'S economy rebounded at an annual rate of 5.7% in the first quarter of this year, a shade faster than America's. Unfortunately, many economists distrust Japan's notoriously volatile statistics: they expect output to fall again in the current quarter. More than 12 years since Japan's stockmarket bubble burst in December 1989, its economy remains fragile. Meanwhile, America appears to have survived the bursting of its bubble in 2000 rather better--so far.

The similarities between America's financial bubble in the 1990s and Japan's in the 1980s have been well rehearsed. In both ...

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