Nikkei closes below 9,000 for first time in 19 yrs.

The Nikkei has gone under 9000, its lowest level since 1983. The TOPIX (average of all stocks quoted in Tokyo, if I don't mistake) is also at its lowest level since 1984.

So, indeed, the economy is declining steadily, but what does it mean ? You can't see it if you walk in Toktyo's streets. People aren't directly poorer for all that. Companies are and risk to go bust more easily. That makes pressures on managers to increase profitability and thus restructurating (i.e. firing some staff), reducing salaries and not paying bonuses. But young girls keep buying Chanel and Prada in Ginza as usual, so you can't really say Japanese are so much poorer than 10 or 15 years ago. Prices are going down at the same time, so even with lower salaries, things remain mainly unchanged for most people. As the yen does devalue, Japanese people maintain their high income standard internationally. What is interesting is that a currency value doesn't necessarily follow the stock exchange. Look at the US after 11 September ; stocks went sharply down while the dollar rose. But the yen is not in a so good position either, though nothing catastophic so far.