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A common question during the GFC (particularly from economic dilettantes who appear to litter the web) is why economists and policy-makers didn’t learn from the mistakes of past asset bubbles, like the Japanese financial crisis. Look! There’s a residential property bubble which collapses throwing the whole economy into recession. How is that not like the GFC? Apparently such superficial similarities are sufficient for such superficial minds.

I’m not proposing to answer the question in any detail. I just thought it was amusing to note this paper I’m reading. It proposes that the solution to the Japanese financial crisis is ‘securitisation’. Yes, that’s right. We did learn from the Japanese financial crisis – we should securitise everything and anything. That’ll stop any crisis from ever occuring again.

Source: HOWARD M. FELSON, CLOSING THE BOOK ON JUSEN: AN ACCOUNT OF THE BAD LOAN CRISIS AND A
NEW CHAPTER FOR SECURITIZATION IN JAPAN, Duke Law Journal 47 at 567
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