Japan's debt crisis is rooted in the 1990s economic bubble burst. The 1980s saw rapid economic growth, fueled by speculative real estate and stock market investments. During this period, an asset bubble formed as property and stock prices soared beyond sustainable levels. In 1990, the bubble burst, wiping out trillions in wealth. To stabilize the economy, Japan's government embarked on massive fiscal stimulus programs, which included infrastructure projects, bailouts for banks and companies, and social spending to support the aging population. These programs were financed by borrowing, leading to an ever-growing debt pile.