Major structural and cultural differences between the U.S. and Japan mean that Treasury bond investors simply using Japan as a template for how things will unfold here may be overlooking important factors.
Mired in deflation and stagnant for decades, Japan has been the economic basket case of the developed world, a cautionary example of malaise run amuck. But because it's export-oriented, the world's third-largest economy is getting an unexpected lift from roaring growth
With talk of outright falling prices gaining steam in the U.S., it pays to reexamine what happened in Japan during its "lost decade." Turns out that the Japanese economy had several buffers -- including less dependence on housing -- that the U.S. is now lacking.