Japan has its own version of the sub-prime crisis on the way.
“A housing loan default problem is looming and likely to begin in the next few weeks. It amounts to the detonation of a ten-year time bomb that, researchers at the Tokyo Foundation say, started ticking around 1999 in the immediate aftermath of the Asian financial meltdown.”
Checkout the full article here
What is even more frightening is the proposal the Tokyo Foundation makes for the government to start buying the houses directly from defaulted borrowers. The Goverment should have just cut the builders a cheque 10 years ago and saved everyone’s time. It is in Japanese but enjoy the madness here: