Analysis: Japan 's lost decade still a risk for US

Analysis: Japan 's lost decade still a risk for US economy Mon, Sep 19, 2011 By Steven C. Johnson NEW YORK (Reuters) – As the US economy slouches toward another recession and confidence in policymakers erodes, investors are coming to grips with the notion that the country may already be several years into a Japan-style lost decade. If so, the years ahead could be a very tough slog. US households, unlike those in Japan, have higher debts and lower savings, while massive deficits have sapped political support for the type of robust government spending Japan relied upon. In short: in a prolonged period of anemic growth, the US economy may have a slimmer margin for error. "I 'm more convinced we are headed in that direction," said Scott Mather, portfolio manager at PIMCO, the world ' s largest bond fund with $ 1.2 trillion in assets under management. "We might have an even harder time than Japan did." Not all economists believe the United States will repeat the Japanese experience, but markets have been flashing warning signs. Three years after the United States 'housing bubble burst, 10-year Treasury yields are struggling to stay above 2 percent, while stocks have declined every month since April. (Excerpt) Read more at reuters.com …