|
When I was in Japan, all the long term bond traders of Japanese government bonds (I knew most of the major ones) kept predicting that the budget would stay out of control and that the Japanes economy would not turn around.
The Japanese government kept trying to convince people that the growth would return, revenue would increase (because of the growth) and the deficit would be dealth with. The bond traders would have none of it. The Japanese government accused them of intentionally hurting the economy, of being over pessismisstic. Every day in the Japan Times there was some Japanese Economist talking about how a return to prosperity was just around the corner.
That was 1994. It is 2005 and the Japanese government still hasn't gotten its fiscal house in order. The bond traders were right. They had to be, because that is how they make their money.
|
