Debt and steep trade deficits wasn't an issue in '87.
If I recall correctly it was an over-valuation type bubble. In 1987, energy prices were low, we didn't have China exporting deflation, USSR was falling apart, European and US industries were beginning to pick up pace in the technology sector. There is an overcapacity of everything these days. It seems to me only the 'multinationals' have the advantage, the little guys almost have no hope.
I don't know about a deflation, but this debt/trade deficit predicament we are facing is not helping anything.
