Naked Capitalism: China's capital spending bubble about to deflate?

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http://www.nakedcapitalism.com/2009/12/is-chinas-capital-spending-bubble-about-to-deflate.html
12/6/09. Research report from Pivot Capital Management, which concludes current stimulus policies are not sustainable into 2010 and have not solved fundamental problems such as overcapacity. "sheds the usual arguments as to why spending can be continued at current clip."  In China now, it takes $7 of credit for a $1 increase in the GDP, vs $1.5 to 1 in 2000-2008, in the US it's now $4 to 1. And private consumption will have to grow 3-4 times faster than in the previous decade to compensate for increases in liabilities. Consumption will have to increase at real rate of 20-30%  per year for 2 years to keep the GDP growing at 10% rate as in 2007.

[TheDignityofStruggle]

Everyone ready for the giant flushing sound?

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A New York joke, back in the '60s: How do you know the party in ____ (insert the name of a borough you or the people you're telling it to don't live in) is over? The host flushes the punch bowl.

[TheDignityofStruggle]