Will the Japanese Affect the U.S. Housing Bubble?

Professor Piggington reports on how privatizing the Japanese post office could affect U.S housing prices:

This past weekend, Japanese voters overwhelmingly endorsed prime minister Junichiro Koizumi's plan to privatize the Japanese postal system. What, you may rightly ask, does mailing a letter in Japan have to do with buying a house in San Diego? To which I answer: potentially quite a bit.

Japan Post, you see, is more than just a post office. It is a massively subsidized behemoth that, in addition to delivering mail, offers insurance and banking services to all of Japan. It is, as a matter of fact, the biggest financial institution in the world, and it controls over $3 trillion in financial assets.

Take away the subsidy and rates will not be the same.There might be less demand for U.S. debt which could mean higher rates and lower U.S. homes prices.Read the whole article.