post-bubble

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pumpjockey

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Without robust economic growth, Japan faces pain, especially since the government has racked up high levels of national debt in an attempt to spend its way out of its post-bubble slump.


I get everything else except post-bubble slump

I gather it is some kind of economic thing but what exactly is it?

your thoughts will be appreciated.:)
 

David L.

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With regard to the economy of a country, an economic bubble (sometimes referred to as a speculative bubble, a market bubble, a price bubble, a financial bubble, or 'speculative mania'!) occurs when stocks and shares are traded in high volumes at prices that are considerably at variance with their intrinsic value - they're not really worth the money they are selling at. This can't last...and so 'after this bubble has run its course and is over' is being referred to 'post-bubble'.
 

vil

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Hi Pumpjockey,

There is a cautionery tale which have to give you a leg up:

South Sea Bubble

(a shameful event in 1720 concerning the South Sea Company based in London)

People rushed madly to buy its shares, expecting it to make high profits from its newly-gamed monopoly of trade with the South Sea Islands in teh Pacific, given in return for taking responsibility for part of the British national debt. Encouraged by the king and the government, the ditectors dishonestly and foolishly used the company's capital to buy its own shares in the market, thus causing the price to go even higher. In time the public lost confidence and the crash came. Some had made great fortunes, but thousands were ruined. For over a century after this the formation of joint-stock companies was stopped by law.

Regards.

V.
 
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