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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (107154)	1/9/2012 12:38:38 PM
From: RetiredNow	Respond to of 149317

I am. Check out what Doctor Copper is doing. See the chart below. There are two bubbles in this chart. The first one occurred during the 1986-89 Japanese real estate boom. We know what happened after that...the two lost decades in Japan where the stock market lost 80% of its value and a copper price crash that lasted until 2002. What happened in 2002? Our Fed successfully reinflated our economy through a real estate bubble. At the same time, China used its massive surpluses and currency peg to the dollar to go on a real estate building boom that has been larger than any country's real estate building efforts in the history of the world. When it crashed in 2008, they reinflated using more of their surpluses. Now the inevitable tide of malinvestement is putting relentless downward pressure on China real estate. Most economists will tell you that Chinese real estate bubble has already popped and will continue correcting for the next several years. Copper will crash along with it. China's economic downturn is a massive drag, larger than Europe's, on the global economy. When you combine the recession in Europe that is already happening and the Chinese slowdown, there really isn't much of a chance that the US recovery can power through this without a recession of our own. What we are going to see is a global synchronous downturn, which is always worse than when it's just one country. I anticipate the next 6-9 months will prove this to be an accurate forecast. seekingalpha.com