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To: Spekulatius who wrote (76308)	4/14/2009 1:05:24 AM
From: Spekulatius	Respond to of 118717

China housing prices could halve by 2011: report Economist sees stagnation in real estate once government stimulus wears off marketwatch.com{4E651E99-0158-4569-BFF0-2B6388932EED}&siteid=yahoomy Recently government investigations had turned up examples of fraud, including developers using fake mortgages to offload apartments onto the books of state-run banks. Many of these state-run banks are facing political pressure from Beijing to ramp up spending as part of the central government's plan to boost the economy. As we all learned in the recent past, it pays to listen to renegades sometimes.

To: Spekulatius who wrote (76308)	4/14/2009 8:36:06 AM
From: Dale Baker	Read Replies (1) \| Respond to of 118717

There is a huge amount of spare production capacity in energy, materials and food right now. Demand would have to return to the point where supply is somewhat strapped before you would see significant inflationary pressure. It also requires wage increase pressures to become a self-sustaining cycle, which is also hard to imagine right now. The consumer will bear the brunt of any early inflationary spikes. But the PPI today was down more than expected; deflation is the word of the day.