do you think real estate only includes housing. nothing commericial and industrial real estate. The collapse of construction and real estat sector in any country has very severe implications. Alot of people pension and savings, investments are tied to it. Not every own house.
No, only about 70% of the population of the UK own houses, & most Japanese (all my Japanese relatives own their own houses or flats, for example). But this is irrelevant. Those who rent suffer from rising land prices, & gain when they fall. Land values in Japan collapsed because they were inflated to unsustainable values, creating immense economic problems. They are now sustainable, & at a healthy level. The problem is not the collapse (unavoidable, because of the excessive level previously reached) but the bubble. The bubble was the problem.
the opposite is true for those owning larger houses. they have larger loan and more investment money tied in asset which has lesser value.
A small minority. You really don't get the difference between shifts in wealth & the creation of wealth, do you?
Japan is big natural resource importer. and since 1989. Natural resource prices has quadrupled. but Japanese exports have collapsed. The country is alot poorer. Just honda and toyota in one year alone slashing people wages. There is no evidience that per capita income increased by 20%.
Until last year, exports were booming. Why do you think all those foreign workers went to Japan? To work in export industries, for the most part! The recent slump in exports has coincided with, & shares a cause with, a slump in raw material prices. What's the oil price now? You are cherry-picking points on curves, mismatching them. That is dishonest.
Look up real GDP per head in Japan. You might even find it adjusted for terms of trade, if you look hard. As I said, over 20% growth per head from 1990 (not 1989 - a bit more from then) to 2008. It will be lower this year. We don't know by how much yet, but unless everyone is totally wrong about the scale of the world slump, Japanese incomes will still be higher than 20 years ago.
You have to compare how much money is invested in airbus projects. It is subsidized industrial complex. If aviation business was so profitable alot of privated investors would have started it. and with such generous loans and leases Its better to buy Western airline. Aviation industry is kept as strategic sector. so Putin can fly Russian airline or countries where western banks are not giving loans. It is not profitable.
Private investors
did start the aviation business in W. Europe, & own most of Airbus. Airbus has made very big profits, overall, & the governments which lent it money have got all their money back, plus much better interest than they pay on their national debts. It's been a very good deal for them. The recent losses have barely dented the long-term record of profitability. W. European military aircraft are made by private firms. Look up who owns Finmeccanica (70% private), BAe (100% private), Dassault (Dassault Aviation 91% private) & EADS (81.56% private).
Medum sized powers are always creating debt in unlimited amount but Real Superpower is decreasing debt even in recession let alone in expansion.
Take away oil & gas, & Russia would be bankrupt. What does it export except raw materials & weapons? BTW, I suggest you look at Russias foreign currency holdings in the last 18 months, & see how much they've gone down. They no longer cover foreign debts.