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How Fast And Abrupt The Downfall Was

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  1. From the first 16:40 video:

    The Fall of the Japanese Economy
    Sep 11, 2022 Japan’s economy is a fascinating study, while the rest of the world has grown so much over the last 30 years, especially its neighbors China and South Korea. Japan has ended in 30 years of deflation and stagnation.

    To illustrate how little growth there is in Japan, in 1994, Japan’s GDP was at $4.9 Trillion. At the end of 2021 it’s at $4.9 Trillion, which still makes it the third largest economy in the world. But as wages kept falling, debt kept rising, and its people kept aging, the future does not look good for Japan. I mean, it has gotten so bad that in a desperate attempt to turn the situation around, the Bank of Japan has bought 80% of all ETFs and 70% of government debt, making it the single biggest shareholder of corporate Japan.

    And what’s fascinating about Japan’s case is how fast and abrupt the downfall was. It was only in the 60s and 70s that Japan experienced 400% growth in 15 years while dominating the export market, flooding the western world with its cheap and innovative cars, computers, and TVs.

    In the 1970s the double-digit growth ended with the oil crisis in 1973 and 1979, and in the 1980s abnormalities began to occur in Japan’s economy, leading to its massive stock market and real estate bubble that burst in 1990 and 1991 respectively.

    So today, we’re going to look at these abnormalities, examine how did it happen, and how Japanese policymakers are combating this phenomenon unsuccessfully so far. About economics explained, about Finance and how money works, on Japan’s economic stagnation, banking crisis and the stock market/real estate bubble, This is an economics/finance video.

    The second 11:20 video:

    Are Rents Crashing in Nashville? Nashville Housing Update
    Ethan Flynn, CPA | Real Estate
    Sep 10, 2022 Analytical approach to the Nashville Tn Housing Market.

    Nashville Housing Market Update specifically charting daily changes in Davidson/Williamson County ~50% of Nashville MSA.

    Hey all. Thanks for watching. My goal is to find the story in data and tell it in an engaging way where you learn something.

      1. They mentioned taken loans out using the appreciated value of real estate as collateral several times, a sure sign of a bubble. Their ageing population and China’s aggressive posture must frighten the Japanese, so they keep U.S. relations going despite being on the losing end of the deal.

    1. Japan’s economy may be stagnant, but they still have a culture, society, religion, lovely homes, few criminals, almost no crime, and, most importantly, an intuitive sense of what it means to be Japanese — cultural pride … Japan is a great place to live. There’s no “malaise” there.

      Compare that to the US today?

      Had we made Japanese-like decisions for our own country in 1994, America would be a much finer place to live.

  2. Central banks will face a tough job restoring trust
    The Australian|19 hours ago
    Why do we trust money Paper money or fiat currency is essentially about trust. We exchange things for money: our labour, something we own like a house or car, or a creation such as a sculpture or a viral TikTok video.

  3. DULUTH — The Arrowhead Region was among 12 of the 13 in the state that experienced a decline in closed home sales (22.6%) compared to July 2021, according to a recent Minnesota Realtors report . Meanwhile, the median sales price in the region was up 14.6% to $235,000, with sellers receiving 101.2% of the original listing price after fewer days on the market compared to July last year.

    “After two years of record-breaking sales, the market is beginning to look more normal. And that’s good news for buyers,” said Chris Galler, CEO of Minnesota Realtors.

  4. In early July, things looked rosy at Airlift Technologies Pvt. as it prepared to raise more cash for expansion. Six days later, the startup — one of Pakistan’s most prominent — was bust. The e-commerce company collapsed less than a week after failing to complete a funding round, underscoring how severely the global rout in tech valuations is affecting fragile startups in emerging markets. Airlift had raised $85 million a year earlier — a record for the country — and had curbed spending in a bid to appeal to investors as it worked toward a fresh round. But then the lead backer pulled its commitment, leaving Airlift with no capital to continue and forcing it to abruptly shut down.

    “The entire team, including myself, was taken by surprise when the round fell apart at the final moment,” co-founder Usman Gul said in an interview. “Airlift was not prepared for the shift in sentiment in capital markets.”

    1. Airlift Technologies

      Airlift Technologies was a Pakistani company that offered instant delivery service.

      Why would such a service be needed in a third world sh!thole?

  5. China’s economy is in trouble. The juggernaut that once looked bound for global domination is slowing down — and not only in the short run.

    The Chinese economy’s projected growth this year has slowed to about 3%, missing the government’s target of 5.5% by an embarrassingly wide margin.

    After decades of galloping expansion, that would be the second-worst performance in more than 40 years. Only 2020, with its COVID-induced recession, was worse.

    Unemployment among young workers has ballooned to 20%. Fuel prices are rising thanks to Russia’s war in Ukraine. The overbuilt housing industry is teetering. And President Xi Jinping’s draconian “COVID Zero” lockdowns have created havoc, most recently in technology-heavy Chengdu (population 21 million).

    Remember when Americans fretted about China overtaking the United States to claim the title of world’s largest economy? That date has been postponed to 2033 or later, and a few economists suggest it might not happen at all.

    1. The Chinese economy’s projected growth this year has slowed to about 3%

      Translation: their economy actually shrank. How much? Hard to say, but when a third of your country is locked down I will assume that the shrinkage is non trivial.

  6. Here’s how large the declines in tappable equity were in the 10 most equity rich markets:

    San Jose, -20%
    Seattle, -18%
    San Diego, -14%
    San Francisco, -14%
    Los Angeles, -10%
    Washington DC, -4%
    Chicago, 6%
    Dallas , 6%
    New York, 8%
    Miami, 8%

    Meanwhile, among the 50 most equity rich markets, here’s what happened with tappable home equity:

    San Jose, -20%
    Seattle, -18%
    Oxnard, Calif. -14%
    San Francisco, -14%
    San Diego, -14%
    Denver, -12%
    Sacramento, -12%
    Santa Cruz, -11%
    Riverside, Calif., -11%
    Los Angeles, -10%

    One big reason why tappable equity is down is, of course, that home prices are down. But it’s also likely that rising interest rates are to blame for how much equity is being withdrawn, as rising rates change how homeowners tap their equity. Homeowners had previously taken advantage of lower rates to take out HELOCs and home equity lending was up nearly 30% quarter over quarter, the largest volume in almost 12 years.

  7. Home sales dropped, prices moderated and buyers were given more room to negotiate. Those were the main takeaways of the August housing market in the DC region and could be a sign of what’s to come in the months ahead.

    Closed and pending home sales in the area fell 25% year-over-year last month, according to the latest monthly report from Bright MLS, as home prices rose slowly and the number of new listings in the region fell 26% compared to last year, the sixth consecutive month of declines for new listings.

    “As we head into the fall market, buyers should expect to find more options and will potentially have more leverage on price, as sellers are readjusting their expectations,” Bright MLS economist Lisa Sturtevant said. “Buyers will also find they have more time to make decisions, and will be in the position of asking for home inspections and appraisals, concessions that were virtually unheard of last year, and are signs of balance inching back into the overall market.”

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