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

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To: bond_bubble who wrote (66667)7/22/2006 8:18:11 AM
From: russwinter  Read Replies (2) of 110194
 
Why do you think, it implies that Chindia stops consuming. Doesnt that mean high price for raw materials for the then meager consumption by America?.>

The issue is two fold. There is a tremendous amount of resource waste and maladjustment caused by the credit and Bully Bubble, and that's really true of Chindia. So if that Bubble bursts, that excess use will be curtailed.
today.reuters.com

Secondly there is a train wreck going on. It's prohibitive to build big projects anymore, the payoff isn't worth it. Resources and commodities really need to deflate to bring this back into equilibrium.
theglobeandmail.com
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