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

To: ChinuSFO who wrote (114609)	6/3/2012 9:59:38 AM
From: mel221	Read Replies (1) \| Respond to of 149317

Their customers have run out of money and those customers are suffering from excessive debt loads.

To: ChinuSFO who wrote (114609)	6/3/2012 10:04:18 AM
From: RetiredNow	Respond to of 149317

What's happening in China was also predictable. They are the manufacturer to the world. If the major developed countries slow, then China slows. It's happening now. Plus, China is a centrally planned economy. They have been engaging in massive malinvestment. Their banks are full of loan assets that can't be repaid, but don't worry, China has massive foreign currency reserves to paper over that problem. Then there is the massive real estate bubble over there. China's in real trouble. As far as India, they also rely on foreign investment, which has been cooling. Investment has taken a nose dive, growth is cooling, they have high deficits, and they are experiencing elevated prices. Not good. But then again, what's happening in India and China is happening the world over. The time for games is over. Sugar high solutions are lipstick on a pig. It's time to move away from the Keynesian beliefs that deficits, zero percent interest rates, and money printing will solve the world's economic problems. All Keynesianism could ever do was buy us time to fix the structural issues. But all of us squandered that time. Now it's time to deleverage in a very big way the world over. The bond holders, in other words the bankers, are the ones who need to take the hit now and write down the value of all this debt and engage in massive debt forgiveness. The sovereigns can't protect the bankers any more. They can try, but eventually the market will force a deleveraging. Either we all get real right now and do this in a calm and structured way, or we'll find the market does it in a chaotic and calamitous way. I prefer the former.