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

To: russwinter who wrote (109463)	1/8/2011 1:51:28 PM
From: GST	1 Recommendation Respond to of 110194

Bottom line: Don't assume that China will make a successful transition to domestic-led growth when so much bad debt is piling up due to lending practices on a scale and with such poor credit standards so as to call into question the solvency of the Chinese banking system -- that is what I hear you saying and that is what I will watch for in coming months. Next, look back at the USA -- watch Jerry Brown on Monday and see if California can get its act together. If it can't, the US will enter a new phase of economic uncertainty -- witnessing the fiscal meltdown of a state that is home to 10% of the American population and a harbinger of what is to come for other states that are headed in the same direction. Washington can print money. The Fed can act like it has unlimited balance sheet capacity -- but the states can only shuck and jive for so long.... mercurynews.com