Finance, Forex and Investments

How high did interest rates go in Japan after they were downgraded?

Oops interest rates actually dropped on the #2 economy. Gee we are already in year 5 of limping along . High debt doesn't seem to be helping us.

Public Comments

1. Ha! Good hook. Good point, as well.
2. Their economy flat-lined for more than 10 years despite low interest rates. This is not a good model to follow if you want growth.
3. They did drop because the government intervened and wouldnt let them rise. Interest rates going up in a recession is a good thing. It is one of the market mechanisms that allow for the market to make the necessary corrections to get out of a recession. Youll notice that Japan also limped along for sometime in a recession because interest rates werent allowed to rise. The same is happening in the US with our current recession.