There was a speculative upsurge in Japan in the 1990s, especially in the stock market and land market. Among them, influenced by the so-called "land will not depreciate" land myth, the resale land transaction volume increased and the land price began to rise. At that time, the total price of land in 23 districts of Tokyo even reached the level of buying all the land in the United States, while banks used the rising land as a guarantee to lend a lot to debtors. In addition, the increase of land price also increases the book property of land owners and stimulates the desire for consumption, which leads to the growth of domestic consumption demand and further stimulates economic development.

During the period of 1985- 1986, with the rapid appreciation of the yen, the international competitiveness of Japanese enterprises declined, but the domestic speculative atmosphere remained warm. From 65438 to 0987, speculation spread to all industries. At that time, the optimistic view was that as long as the land demand was high, the economy would not decline, and the market also encouraged people to keep buying stocks, claiming that stocks would never depreciate from now on. At that time, in order to name this economic prosperity, Japanese media also hoped to name it like Iwate Prosperity and SHEN WOO Prosperity. However, at that time, there were a few objections that the land price had far exceeded its actual demand and Japan's economy would fall into recession in the near future.

According to the principle of economics, the increase of land price leads to the decrease of profit rate of enterprises renting factory or office land, so it is reasonable to sell land and buy debt, which will lead to the decrease of land demand. According to the theory of supply and demand, the price will eventually tend to be balanced. Japanese enterprises generally use book value to calculate land assets, so on the surface, the rate of return of enterprises has not changed, and the difference between book value and actual value leads to the increase of book property, thus stimulating Japanese enterprises to pursue the scale of total assets rather than the rate of return.

At that time, many large real estate companies would seize the land by improper means with the help of underworld forces in order to obtain the land around the metropolis, which led to serious social problems. Remote rural land with no income possibility has also been fired at a high price as a leisure tourism resource. The profits from land transactions are used to buy stocks, bonds, golf course membership rights, as well as overseas real estate (such as Rockefeller Center in the United States), precious works of art and antiques, luxury sports cars, overseas tourist attractions and so on. At that time, this kind of fund was called "Japanese money", which attracted the attention of the world economy and was sought after by businessmen. At that time, with the rise of share price, the consumption boom of buying high-end cars such as Ferrari, Rolls Royce and Nissan CIMA in Japan was also on the rise.

From 65438 to 0989, Japan's bubble economy reached its peak. At that time, Japan's economic indicators reached an unprecedented high level, but the so-called bubble economy began to decline because the rise in asset prices could not be supported by industry.

Once speculators lose their desire to speculate, land and stock prices will fall, which will lead to the loss of book funds. Because many enterprises and speculators have invested too much before taking the rising book capital into account, which will bring a lot of debts. With the end of the central government's financial easing policy, the possibility of maintaining Japan's domestic asset prices no longer exists.

1990 In March, the Japanese Ministry of Finance issued the Regulations on Controlling Land-related Financing to control the total land finance. This man-made sudden braking led to the accelerated decline of the bubble economy that had entered a natural recession, and led to the collapse of the long-term credit system that supported the core of Japan's economy. Since then, the Bank of Japan has also adopted a financial tightening policy, which further led to the bursting of the bubble.

On February 29th 1989 15.87, the average share price reached the highest point, then it began to fall, and the land price also began to fall around 199 1, and the bubble economy began to burst. 1992 in March, the average share price of Nikkei fell below 20,000 points, only half of the highest point 1989. It further fell to 14000 in August. A large number of book assets disappeared in just one or two years.

As the price of land has also dropped rapidly, there are also great risks in loans secured by land. At that time, the non-performing loans of major Japanese banks were exposed one after another, which caused a serious blow to Japanese finance.