Deutsche Bank's Conflicted U.S. Outlook

Since the 2007-08 financial crisis, economists have debated whether the U.S. economy is in danger of falling into a protracted, wealth-destroying slump such as the one Japan experienced in the 1990s. The view at Deutsche Bank? Depends on who you ask.

Deutsche Bank’s Ajay Kapur says the U.S. is sliding into a torpor similar to Japan’s so-called Lost Decade. The Hong Kong-based strategist draws the parallel based on similarities in demographics and financial-market performance. Binky Chadha, head of the bank’s U.S. equity strategy team in New York, and Michael Biggs, a London-based economist, disagree. They cite variations in the nations’ growth rates and credit demands that undercut the Japan analogy.