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

During the period from 1985 to 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 demand for land 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 kind of economic prosperity, Japanese media also hoped to put forward names similar to 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 to buy bonds, 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. However, Japanese enterprises generally use book value to calculate land assets, so on the surface, the rate of return of enterprises has not changed. The difference between book value and actual value leads to the increase of book property, which stimulates Japanese enterprises to pursue the scale of total assets rather than the rate of return.

At that time, in order to obtain the land around the metropolis, many large real estate companies would use the underworld forces to seize the land by improper means, which led to serious social problems. Remote rural land with no income possibility has also been fired at high prices 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, etc. 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 stock price rising, the consumption boom of buying high-end cars such as Ferrari, Rolls Royce and Nissan CIMA also rose in Japan.

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 rising 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 capital. Because many enterprises and speculators have invested too much before considering the rise of book capital, it will bring a lot of debt. 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 the Control of Land-related Financing to control the total amount of land financing. This artificial sudden braking led to the accelerated recession of the bubble economy that had fallen into 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. 1March 1992, the average share price of Nikkei fell below 20,000 points, only half of the highest point 1989. It further fell to about 14000 points in August. A large number of book assets disappeared in just one or two years.

Due to the rapid decline in land prices, loans secured by land also present great risks. At that time, the non-performing loans of major Japanese banks were exposed one after another, which caused a serious blow to Japanese finance.