7 Eerie Patterns of Financial Crashes That Whispered Warnings Before the World Woke Up

2. The Japanese Asset Price Bubble of the 1980s

Japan’s 1980s economy is a textbook example of an asset bubble. The clues were obvious: land and stock prices skyrocketed, driven by speculative investment and easy credit. The Bank of Japan eventually tried to rein in the bubble by tightening monetary policy, but it was too late. The bubble burst, and Japan entered a long period of economic stagnation known as the "Lost Decade." Early action might have softened the blow.