Is the American economy heading for the same disaster that hit Japan in the early 90s?

Question

"Japan’s experience demonstrates how difficult it may be for traditional policies to ignite recovery after a bubble. In the early 1990s, Japan’s property and stock market bubbles burst. That implosion was worsened by a banking crisis and excess corporate debt. Nearly 20 years later, Japan is still struggling." Stephen Roach (NY Times)

Answer 1

I think they are facing rather different issues, and I doubt I'd carachterize the Japan economy of the 90s as a "disaster" anyway.

Answer 2

no, Banks are finally realizing it was stupid to give loans to people that made 30,000 dollars a year 500,000 dollars loans to buy a house

Answer 3

I think the american disaster might be worse than the one in Japan.  

Japanese had and still have one of the highest saving rates in the world.   They save a higher percentage of their income than people in most other countries save.

Whereas americans have one of the lowest saving rates in the world.  A great many americans have huge debts and their net worth is negative.

The Japanese were in a lot better position to weather their economic downturn than most americans are at the present time.

But there are some similarities between the Japanese crisis and the present one in USA.  Just like in Japan before, the US government is doing its best to prevent insolvent banks from failing and thus eliminating bad debts in the economy.  The continued existence of sick banks who might fail at any time will keep the investors and the healthy banks fearful and less willing to take risks in the economy.