January 2005
china is not japan. took 40 years for the japanese bubble and that was
because japan has liveable land mass smaller than a gnats pecker so
driving property prices artificially high by the banks, local mob, and
other investors of nefarious repute was easy. and japan had not opened
its economy to foreign goods, investment, or capital until after the
collapse so there were not vested foreign manufacturing or other
interests in the country. the chinese are advised by goldman sachs
and has intel and gm making stuff there. chinese weakness can only
come from american consumers tearing up their credit cards. stephen
roach at morgan stanley reached the same conclusion yesterday calling
the american consumer "spoiled" and "pampered" and "addicted to credit
card debt." excellent news for the rest of the world. not so excellent
news for the us government trying to talk tough about the dollar with
the anyone other than the girls scouts.
china is not japan. took 40 years for the japanese bubble and that was
because japan has liveable land mass smaller than a gnats pecker so
driving property prices artificially high by the banks, local mob, and
other investors of nefarious repute was easy. and japan had not opened
its economy to foreign goods, investment, or capital until after the
collapse so there were not vested foreign manufacturing or other
interests in the country. the chinese are advised by goldman sachs
and has intel and gm making stuff there. chinese weakness can only
come from american consumers tearing up their credit cards. stephen
roach at morgan stanley reached the same conclusion yesterday calling
the american consumer "spoiled" and "pampered" and "addicted to credit
card debt." excellent news for the rest of the world. not so excellent
news for the us government trying to talk tough about the dollar with
the anyone other than the girls scouts.
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