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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding

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To: ggersh who wrote (2185)3/25/2019 2:54:27 PM
From: elmatador  Read Replies (2) of 13780
 
It all can be traced back to where it started in 2009

Unwinding is the name of the thread

Bernanke panicked and the rest of the world followed suit.

Stimulus and Quantitative Easing that were supposed to be temporary and reverted back to the old normal

It didn't happen. The world economy got used to CBs. It was like a drug. The world economy got addicted to it.

The US at least tried to go to rehab. The Japanese, European and the Chinese didn't even try to kick the habit.

The misallocation of capital has been big.

If the unwinding did away with the Chinese Decade creations:
  1. commodities exporting countries gone crazy
  2. overspending and
  3. fed rampant corruption.

The unwinding, in the other hand, created other misalocations of capital

  1. Big Tech hyper growth that demolished established businesses because they had the easy money to do so
  2. Musk sending his car into space
  3. Tests of spacecraft for space tourism and
  4. Trip to Mars
  5. People loading up with debt
  6. And alst but not the least the uber misallocator China with its Belt and Road and building artificial islands to claim the sea around them
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