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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 414.48+0.7%Jan 9 4:00 PM EST

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To: TobagoJack who wrote (62781)4/15/2010 2:25:31 PM
From: Elroy Jetson9 Recommendations  Read Replies (3) of 219198
 
With 60% of China's economy derived from constructing empty buildings largely sold to speculators, you're in a bubble with immense amounts of capital actively being destroyed.

Japan destroyed much of their capital reserve in exactly the same manner.

Nor did immense reserves of foreign currency and foreign debt help the United States in 1929. It didn't really matter that the 1920s bubble in US stocks and real estate was financed with local savings.

Malinvestment merely is malinvestment.

Initially it looks similar to prosperity, but the end result is quite different.
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