Stephen Roach from Morgan Stanley writes:
I continue to be struck by the eerie similarities between post-bubble patterns in Japan and America. Five years after the bursting of the US equity bubble, the Nasdaq continues to track the post-bubble Nikkei very closely. Is this merely a coincidence or, in fact, a visible manifestation of the long and drawn out perils of a post-bubble shakeout? ... Everyone -- from investors and recovering dotcomers to policymakers and politicians -- seems united in their conviction to dismiss this possibility as nothing short of blasphemy."
Source: Morgan Stanley Global Economic Forum, May 2, 2005
I've seen the mania around me. I'm wondering about how those who are using low APR adjustable rate mortgages could cope with interest rates of 8 or 10%. The rest of the article is definitely worth reading.
