Readings for the Day

From Market Watch: Ten Investment Ideas for 2009
From Mish: Asian Economic Crisis: Spotlight on Japan, China, Korea, Vietnam
Bank of Japan considers extraordinary steps, and Japan announces record budget:

Extraordinary measures are a way of life for Japan. From currency intervention to building bridges to nowhere, Japan has taken extraordinary measures for decades. In that timeframe, Japan went from being the largest creditor nation to a nation deep in debt.

As of November 17th, 2008, BusinessMirror notes "Japan's public debt that exceeds 180% of the GDP, limiting the government's ability to stimulate growth".

China Needs More Policies to Spur Consumption:

Economic policies have failed to rebalance growth away from trade and investment, with the share of consumption in gross domestic product falling to less than 50 percent from 60 percent a decade ago.

Premier Wen Jiabao may unveil a second stimulus package as early as next month aimed at spurring consumer spending as the economy is set for its slowest growth in two decades. The government has already increased subsidies for farmers to buy household electronics, cut taxes on property and is preparing policies to revive slumping car sales in the world’s second- biggest auto market.

Consumer spending represents more than two-thirds of the U.S. economy while household consumption’s share of China’s gross domestic product slumped to slightly more than 35 percent last year from 45 percent a decade ago, according to Chinese government data.

“This shows there is huge potential to boost consumer credit and encourage people to buy homes and cars,” Yi said. Does anyone learn? Credit bubbles caused the great depression, and the great recession that we are in. One might think that someone in authority would learn something from this. But they never do. China wants to follow the US to ruin.

It it not possible to have too much savings. It is possible however to have too much debt and that is where the US is right now.