The Epic American Credit and Bond Bubble Laboratory Message Board

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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: mishedlo who wrote (49197)	1/9/2006 2:59:02 AM
From: GST	Read Replies (1) of 110194

LOL -- They eat food (that they grow), they dress (in clothes they make), move around in their cars (made in China and they usually pay cash), take vacations and travel, buy electronics (that they make in China), buy property (with money borrowed from other Chinese savers) and do other things just like every place else on planet earth. What makes you think they need us so badly? We are useful for foreing exchange -- and they have accumulated a ton of that already. They have money because they find something useful to do and they get paid. They have money in the bank and avoid debt -- as a result, they are relatively untouched by the sorts of things you assume will hit them. Loans are not common and credit card use is low, with those who use them seeing them more as a payment system than as consumer credit. With rare exceptions, they are not exposed to a significant property bubble. Rampant speculation in Shanghai is the exception. Property prices in China reflect the use value of a place to live. Remember -- you are not buying land, just part of the building. They do own land of course -- on Long Island. But that is another story.

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