Growth! It’s being a long time between drinks for the USeconomy, but over the September quarter it expanded at a 2.8%pa annualisedrate. The world’s major economies all look set to expand over the fourthquarter, ending the recession. The first wave of euphoria from this news isalready reflected in the 63% market rally since the low in March.
It’s the New Year, with property pricessliding, the stock market down more than 40% from its peak, and the governmentembarking on a range of economic stimulus initiatives, many of which are ofdubious quality. But in this story, the "New Year" isn’t 2009; it’s 1992. Andthe country isn’t the US or even New Zealand, but Japan.