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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 378.35+2.7%4:00 PM EST

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To: TobagoJack who wrote (60422)1/26/2010 3:23:59 AM
From: energyplay  Read Replies (1) of 217643
 
As China's economy continues to grow at > 6%, new capital will be needed for banks even if almost every investment is okay.

If we assume there is a business cycle in addition to growth, there will be even more new capital will be needed.

Which is perfectly reasonable for a successful growing economy.

>>> There is a bonus in this for the central government - these new capital issues will absorb some of the hot money that is going into commodity and real estate speculation.
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