by Zach Bethune, Thomas Cooley, Espen Henriksen, and Peter Rupert
Is Europe about to repeat Japan’s lost decade? Six years after the Great Recession began, the Euro area has shown little sign of sustained growth. Japan’s so called lost decade began in 1991 after several decades of rapid economic progress and sustained increases in asset prices that were suddenly reversed. The average growth rate of real GDP per-capita declined from about 3.5% per year in the 1980s to about 0.5% per year in the 1990s and was accompanied by rapidly decreasing equity and real-estate valuations. But, when we compare the performance of Japan’s economy with the European economy since the beginning of the Great Recession it is clear that Europe is in far worse shape than Japan ever was.
The following Snapshot-style comparative charts show the paths of key economic variables in Japan after the peak of its equity and real-estate valuations…
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Utopia, you are standing in it! 
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