He first compared the US housing market (S&P/Case Shiller Home Price Index) to Japan's housing market when they crashed 14 years apart (2006 in the U.S; 1992 in Japan). I put up a snapshot of the chart. Read his slides while watching the video: The World in Balance Sheet Recession: What-Post 2008 U.S., Europe and China Can Learn From Japan 1990-2005 (Slides).
He strongly believes that once an economy experiences a nationwide asset bubble, the Government must step in to borrow and spend until the private sector recovers (finishes deleveraging balance sheets), or risk an economic crash. So how does the story end in the the U.S.? I'm hearing either Weimar Republic style hyperinflation, Japanese deflation or 70's style stagflation. FYI, according to Clear Capital's Home Data Index, U.S. home prices dipped below the March 2009 low in April (read more).