// Source: Japan Real Estate Institute, Cabinet Office, Tokyo Stock Exchange
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- The prices of land used as collateral for loans rose almost 600% in the 1980s.
- As the bubble burst on these prices, collateral values fell off a cliff.
- This led to a sell-off in stocks, as both asset values and access to debt stalled.
- The sell-off was exacerbated as troubled companies sought to shore up their balance sheets by selling-off cross-holdings.
- The "lag" between decreased land prices and the stock-market sell-off (between 1989 and 1991) shows,
at least in part, the reluctance to abandon the "keiretsu" notion of cross-holdings. Once this gave way,
the sell-off found itself without a floor.
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