We’re now about on par with New Zealand and Canada. The good news in this is and will continue to be a transfer of wealth between the Middle Class and the Upper Class. We’ll see more people who know how to manage their finances poorly slip into the lower income area and the people who know how to manage and invest will grow into the upper class. ( This is good news for you Ramit, and good news for me too) Kind of like we see in other countries such as India and China. A small but very rich upper class and a large lower class.

If you look at states that have had … near economic collapse, like Michigan you’ll get a better idea of what I’m talking about.

A lot of people live the type of lifestyle they do, largely financed on credit. As credit becomes harder to get and variable rates for debt increase, we’ll see a crappier type of lifestyle in general. But it’s not the end of the world.

I’m not suggesting that you dump all stocks and simply invest in gold, but I do think a 10-15% stake in gold (physical gold, not ETFs or mining stocks) is a good investment, at least for the short term.

Unless someone can convince me otherwise… Ramit?

Ramit wrote: “Please add more horrible financial advice you find to the comments. I’m especially interested in finding people who recommend buying gold and tin cans full of oil and butter. They are the best.”

Thanks,
Noah

@Gayle, my inquiry wasn’t out of concern, more just general curiosity. I incorrectly inferred from your initial post that you had developed a “time the market” approach with your entire investment portfolio instead of playing it both ways as you mentioned in your reply. I always cringe when I see and hear of people trying to time the market regularly and on a site like Ramit’s where the target audience is the youngins, I wanted to get my two cents in about the old buy and hold strategy. Having re-read my initial post, I probably should have had a second cup of coffee before replying.

Think Japan is bad? You should try living in Korea.

I’ve lived in Japan for a little over two years now, just south of Yokohama (which is just south of Tokyo). Economically, the country is still in shambles. Interest rates are incredibly low, so low in fact that I know some folks with 1% rates on mortgages. The larger problem, though, is that the personal savings rate here sucks. The average Japanese consumer is up to his/her eyeballs in debt. Prices are extremely high and the social norms (and some laws) basically force people to continually spend beyond their means. It’s not uncommon for a brand new driver to get a 10 year car loan, even though the average Japanese buys a new car in less than 5 years because of the high taxes imposed on keeping a car any longer. Home loan terms can range from 40-60 years as well, especially in and around the major cities. The average salaryman works 10-12 hours a day or more and earns squat compared to his western counterparts.

You’re right about certain elements of living here, especially for foreign males. The people are generally helpful and courteous. Crime rates (actually reported) are very low. The food is delicious and the public transportation system is top-notch (albeit expensive).

However, there are negatives as well: because it’s such a homogenous society (99% of inhabitants are Japanese), there’s rampant racism against foreigners – despite being courteous, there is an underlying “tone” that we’re all inferior. Even hafu (half-Japanese) kids are considered non-Japanese because of their tainted blood. Sexism is astonishing – women are second-hand citizens… ironically because the mothers here teach their sons that they are the center of the universe, which only continues the downward spiral. People that fall outside of the “median social norms” are basically outcasts. Physically and mentally handicapped folks are “hidden” from the rest of the society. Elderly (especially women) are neglected and many have recently died because they have been refused acceptance at hospital facilities. The sex trade here is alive and well, often through the trafficking of very young women or girls from poorer parts of Asia – and is relatively ignored by the government officials (except for those that frequent the establishment, but that’s not fixing the problem). Marriage here is a business contract and not much more – the western idea of “cheating” on one’s spouse is not considered a second thought here.

As a reasonably young foreigner male, the only really negative experience that I’ve encountered is the racism. Many of my single American friends have had no trouble getting dates with Japanese women, who more often than not prefer Western men because we (and I quote) “treat them nicer than Japanese guys do”. I’ve seen many a Japanese woman become “tainted goods” to Japanese men because of a prior relationship with a Westerner, though. There are numerous restaurants, bars, and clubs that are permitted to hang signs that say “Japanese Only, no foreigners allowed”. My son has been called the English equivalent of “gross, nasty, disgusting, or stupid” foreigner on the playground by Japanese children under the age of 5 (these kids must be learning that foreigners are bad somewhere… my guess is at home) for doing nothing more than asking if they want to play with him – even when he asks in Japanese.

In short, Japan – like anywhere else – has positives and negatives. Anyway, didn’t mean to hijack the comments. Just thought I’d share my 2 cents.