Thursday, December 17, 2009

China?

Significant long-term concerns about overcapacity, local government financing platforms heavily leveraged, so problems will arise when lending slows down and liquidity dries up, 2011 could be very dangerous given new capacity buildup... Could this smell horribly like the Middle East after the 70's oil shock? Build all that capacity and oil heads to $10 / barrel? A lot riding on China's ability to keep utilizing any capacity build , and doing so in pretty short time frames.

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