The crash

It was focused on the country’s growing asset bubbles by Japanese officials in 1989. And the Bank of Japan changed its policy which tightened monetary policy. Soon after, it plunged from approximately 39,000 to 20,000 in Nikkei Stock that was nearly 50% decrease. This imploding stock bubble affected real estate bubble. The Zaitech-in-reverse caused the Japan into deeply financial crisis. This financial crisis was similar disaster with war.


Japan started the edge which called “Lost Decades”. This means that deflating stock and property prices during the 1990s and 2000s. Government was frequently helping many unprofitable and debt-ridden companies during this time. The residential real estate was only worth 10% of its late 1980s peak in Tokyo in 2004. Nowadays, the Nikkei stock index is around 15,000 which just achieve half of the peak point.