Economy | US bubble collapse to be worse than Japan’s

Economy | US bubble collapse to be worse than Japan’s
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First Published: Mon, Feb 23 2009. 09 29 PM IST
Updated: Mon, Feb 23 2009. 09 29 PM IST
Tokyo: The US is facing a deflationary collapse more severe than the crash that hobbled Japan’s economy in the 1990s, leaving gold as the only defensive play for investors, according to CLSA Ltd’s Christopher Wood.
The housing recession in the US led to a crisis in the banking system as lenders became saddled with illiquid mortgage assets, souring the securitization industry that helped drive credit growth in recent years. The nation’s retail sales fell 10.5% in December as consumers became more pessimistic and scaled back purchases. The collapse of securitization is a much more deflationary situation in the US than anything seen in Japan when the bubble collapsed in the early 1990s, Wood, Institutional Investor’s top-ranked Asia strategist, said at a conference in Tokyo sponsored by CLSA. What we need in the future is a more fundamentally disciplined system, even at the cost of higher levels of growth.
Bloomberg
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Panel pulls up govt for delay in NCSC report
New Delhi: A parliamentary committee has pulled up the government for failing to table the first report of the National Commission for Scheduled Castes (NCSC) in Parliament.
NCSC had submitted its annual report for the financial year 2004-05 to the government on 13 July 2006.
“The committee is pained to note that the ministry of human resource development and the ministry of panchayati raj are taking long time in furnishing their comments on the NCSC report leading to delay in tabling it in Parliament,” the committee on the welfare of scheduled castes and scheduled tribes said.
PTI
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First Published: Mon, Feb 23 2009. 09 29 PM IST