The Chinese Will Help Bust the Bubble
From the San Franciso Chronicle
"In the new global economy, almost everything's connected to everything else. Case in point: China will let its currency rise against the dollar and America's housing bubble will burst.
Let me explain. The housing bubble has been pumped up by low mortgage rates which have made it easy for lots of people to buy a house. Or two. Other major investments require more capital up front. But with mortgage rates this low, housing has become the major investment for average Americans who haven't saved much of anything."
Continue...
"In the new global economy, almost everything's connected to everything else. Case in point: China will let its currency rise against the dollar and America's housing bubble will burst.
Let me explain. The housing bubble has been pumped up by low mortgage rates which have made it easy for lots of people to buy a house. Or two. Other major investments require more capital up front. But with mortgage rates this low, housing has become the major investment for average Americans who haven't saved much of anything."
Continue...
posted by Little_Silvered at 8:55 AM
1 Comments:
this guy is so smug with his message - "be careful what you wish for."
THe trade balance is SO FAR out of whack, that the longer it lasts, the worse the final fate will be. The chinese currency should be unpegged because it is throwing the whole world economy out of whack.
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