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    • Sun Jul 20th 13:12 PM | Rating: 0 0
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      How the U.S. Financial Crisis Resembles Japan’s 'Lost Decade' - And How to Play it
      Ladies & Gentlemen,
      This is not the first recession or slowdown, (whatever someone wants to call it), nor will it be the last one. We have gone through all of these things before and came out of them OK. The world is not coming to an end. I am amazed at the press talking and printing heads, they are supposed to be smart and rational, yet they never act this way. Japan can not be compared to the US, for many factual reasons, Japan does not have natural resources the US has, does not lead in technology the way the US does, does not have the agriculture land that the US has, did not have inflation in the 90's, it had deflation. You can not have strong economies without consumers. Over the long term consumers maintain strong economies. Canada was in worse shape than the US in the 90's, We had a more or less real estate crash in Ontario, I remember reports back then that said, due to the Canadian high debt and very high budget deficit, the Canadian dollar was going down like crazy, from 1.10 USD to 1 CAD, in the 70's to 62 cents in the late 90's, all the economic talking heads were saying the same thing about Canada then that they are saying about the US today, in fact, they were predicting Canada would be bankrupt within 5 years max. Nobody can anticipate what will happen in the future. But the facts speak for themselves. Today the Canadian dollar is back, it is equal to 1 USD. The Canadian government did not go bankrupt, instead it has been operating with a budget surplus now for the last 10 years. Our economy was revived again, in fact, it is doing very well, compared to the rest of the world, we have the best economy in the G8, foreign investors that invested in Canadian companies during our bad years, did very well and are still doing very well, etc........

      I compare the US now to Canada's crisis in the late 80's and early 90's, the US will come back stronger like Canada did, because the US and Canada are similar, in natural resources, technology, foreign investment, consumer driven economies, style of government, stable political environment, agriculture, culture etc..... Japan and the US are not similar.

      However, I have an engineering back ground. I am not an economist. I don't know how to predict the future and I don't intend to learn. But I know one thing, the world has seen these crisis before and always came out of it. Lets keep things in perspective. Lets keep things rational and intelligent. Many Wall street financiers, economist and talking heads seem to like drama. They also seem to have short and selective memories. I learned not to trust them. I agree with the comment about Warren Buffet above. His facts speak for themselves and last time, I read about him, which was not long ago, he was not selling his holdings and hoarding gold. He was buying very cheap companies in and outside of the US, mainly companies that Wall street trashed and that is what he always did. He must be much smarter than anybody else on Wall street, because he has made a lot more money than any body else on Wall street. One more thing, Warren Buffet does not get excited and irrational and he does not make irrational statments like George Soros and Jim Rogers and all these people that keep telling us the world is going collapse and we are going to have a very bad ending.

      Anyway, this is only my humble opinion, I am selectively buying American banks now, I am buying good cheap companies that Wall street trashed, such as Nvidia, Vasco Data Securuties, I am buying Lloyds bank also and Barclays, they have been trashed also and they have excellent dividends, I am buying a good American Tobacco Company with excellent divident Vector group, I already have quite of few Canadian dividend paying companies and I just bought a very interesting Chinese company A-Power Energy Genration Systems.

      I totally believe that in 2 years, most of these banks and companies will be worth a lot more than they are worth now. Good luck to every one and don't get taken by Wall street's drama.
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