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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: GST who wrote (48267)	12/28/2005 12:48:07 AM
From: John Vosilla	Read Replies (1) \| Respond to of 110194

What makes you so sure China will be so dominate the world economy in 10-20 years? Whatever happened to the new economies in Germany, Japan and the Four Tigers from the late 80's? What we all know is China's banking system is in ruin and the US government is broke, that the US housing bubble and consumer spending tied to it depend in large part on Chinese banking system remaining solvent and continuing to fund very low ROE capital investments that blow up in their face and ours as well next downturn. You asked earlier today why there would ever be any more capital investment in the US. Think nondiscretionary spending still being there, think being close to your largest customer in a world of skyrocketing transportations costs, think dirt cheap land and low costs of doing business throughout a large part of the heartland, think next generation innovations in biotech, health care, nanotech, agriculture, alternative energy ect... Too much made of China, coastal housing bubble and consumer debt levels. They will all end bad but look for the next game to play. How many of you guys here were heavily investing in RE in the late 1990's when no one cared about that game?