Author: World Worst Stock Picker
Website: http://worldworststockpicker.com/2009/02/08/hakomono.aspx?re…

The New York Times has an interesting article on the collapse of Japan’s real estate market of the 1980’s and their attempt to solve it by building infrastructure projects. The economists concluded that some of the projects were not really thought out. The conclusion of the article is that the stimulus package should be massive and all of the money should be deployed quickly. Japan’s mistake was to spread out the construction throughout many years. It also built bridges to nowhere. Spending should be done mostly on projects that will benefit the economy for many yeard by creating jobs after construction is finished.

hakomono: white elephant

source: http://www.nytimes.com/2009/02/06/world/asia/06japan.html?pagewanted=1&_r=1

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