Turning Japanese

During the Sub-Prime crisis, we were comforted somewhat when we were told how the people in charge had learnt from the Great Depression and the Japanese economic slowdown. We'd never repeat the same mistakes...apparently.

It was popular to say that China's economic challenge to the US would fizzle out much like Japan did in the 1990's. The irony is that it is the US which is looking increasingly like Japan instead. Click here.

Instead of zombie banks and corporations propped up by the Japanese government without any meaningful change, the US is faced with zombie banks and zombie households. Our bailout was too small and the banks were let off with a slap on the wrist and they carry on their worst practices with impunity. Click here.

With a Congress and a President who are entirely compliant to the will of big corporations, nothing meaningful will ever change. The one person who did try to stand up, Elizabeth Warren, was not asked to head the very organization she had set up--the Consumer Financial Protection Bureau. Click here. Corporations are flush with cash and doing better today than ever.

Sure, we have the know-how to avoid the next great recession. But we've certainly proven we have neither the spine nor the political will to steer in the right direction.