A piece in the Financial Times titled: China risks repeating the errors of Japan
The title says it all really.
The FT is often gated, and with a free registration many articles can be read. Link above.
Tett discusses parallels between China and Japan in the article. There are differences she mentions, too, of course ... but the path China is on of not allowing markets to clear is scarily familiar.
If you want to see what can happen when a government tries to prop up stock and land prices, Tokyo's story is sobering. It shows that not only do interventions carry a financial cost (since they rarely work for long), but that they can be a lasting drag on investor psychology.
