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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 (88100)	10/28/2007 2:38:23 PM
From: KyrosL	Read Replies (1) \| Respond to of 110194

<they are buying it like crazy> Unfortunately, they are not buying nearly enough. The reality in China is that people save 20% or 30% of their income, even though the country is investing like crazy in infrastructure and industrial development. This is unprecedented in the history of mankind, and explosively unsustainable. The Chinese savings rate does not seem to recede in spite of a decade of breakneck growth. China may consume a lot compared to the past, but unless they consume a lot more, something is going to crash sooner or later. The most startling phenomenon in China is that the state has withdrawn services such as medical care, education, etc. that used to be provided free (admittedly at a somewhat primitive level) not too long ago. It seems huge savings is a way for people to prepare for paying medical, education and other costs that used to be free or heavily subsidized.