What caused Japan's real estate bubble in the 80's to pop?

Did it have something to do with people buying in the market not being able to afford it?



Thanks!What caused Japan's real estate bubble in the 80's to pop?
Capitalism allow marginal buying for speculation with self risk-taking. People very greedy those days wanted to gain too much return in short term. Banks supported them. Government too.



Then once realized people that tulip bulb is just bulb, too much unpaid loan were left as the asset worth evaluated to re-investigate were almost just only too overrated. Stock market fallen down rapidly also triggered off the tragedy. They went over across the point of no return.



Japanese used to believe a sort of myth that real estate worth will never fall down because of too limited land there but it was just misunderstanding. Surplus liquid capital happened in Japanese industry, capitalists, banks and/or some more foreign speculators originally scheduled to purchase American goods importing to Japan but they didn't do that.



They knew it was not profitable and, iInstead, purchased real estate, stocks in Japan much much more over and over again.



Then, once one of them burnt out to tightrope ride and gave up their playing old Maid card game on the bubbled tower top, everything turned out. The players rushed to the stairs fell down one on top another. Everything was in vain. Their tremendous assets were just illusion.What caused Japan's real estate bubble in the 80's to pop?
All bubbles collapse sooner or later. During economic bubble in late 80s, people spent a lot of money on stock and real estate. As a result, stock and real estate prices in Japan skyrocketed.



But those prices can't keep soaring forever as people can't keep spending money forever. It would collapse when it reaches to the limit of speculative buying.



The direct cause, or one of the causes, was the policy of the Japanese government at the beginning of 1990 to regulate proportion of bank loans on real estate.



Then, from January 1990, stock and real estate prices began falling rapidly.

http://en.wikipedia.org/wiki/Japanese_as鈥?/a>