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Triple bubble in China??


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2014 Nov 20, 3:39pm   1,259 views  3 comments

by lostand confused   ➕follow (3)   💰tip   ignore  

http://www.marketwatch.com/story/china-triple-bubble-points-to-long-slide-for-commodities-2014-11-20?siteid=yhoof2

Now, its time to get used to the commodity super down cycle, and China is the biggest reason why, warn strategists at Credit Suisse in a Thursday note. Commodity demand tends to be very cyclical. Commodities, however, have been underperforming cyclical indicators of growth, including industrial production and new manufacturing orders (as measured by Institute for Supply Management survey data), they say. Much of the blame is on China, the strategists argue, noting that the country remains the most significant source of demand for most industrial commodities (see chart below).

#bubbles

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1   indigenous   2014 Nov 20, 10:38pm  

No shit, China is lousy with malinvestment. As Michael Pettis would say they need to rebalance. They are going to be up against it for a while.

2   HydroCabron   2014 Nov 20, 11:00pm  

Wow. Sounds like the Fed's loose-renminbi policy really screwed 'em good.

3   indigenous   2014 Nov 20, 11:15pm  

HydroCabron says

Wow. Sounds like the Fed's loose-renminbi policy really screwed 'em good.

No mutt it is called mercantilism

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