JAPAN MAY BE INSTRUCTIVE Nikkei Index 1988 - present Japanese discount rate Annual real GDP growth 40,000 8% 6% 30,000 6 3 Average 20,000 4 0 10,000 2 -3 0 0 -6 1990 1995 2000 2005 Oct2008 1990 1995 2000 2005 Jul-08 1990 1995 2000 2005 Source: Bank of Japan, Yahoo Finance