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To: Road Walker who wrote (181374)5/26/2005 12:16:59 PM
From: GVTucker  Respond to of 186894
 
John, OT, RE: In my VERY humble opinion, it's not if it's when. You don't think we can recover from these imbalances with a "soft landing" do you?

I'd agree that it is inevitable. Sooner or later China will figure out that they're only hurting themselves. You'd think that a stock market that declines 30% while their economy grows 10% would give them a hint, but I guess not.

We might as well put that off as long as possible, though. The longer that China sends us their capital, the longer that we have to grow out of our problems. That is dependent, of course, upon the thought that this cheap capital hasn't caused some of our problems in the first place. I don't think it has, but there's a persuasive school of thought that would disagree with me.