Manufacturing Bubbles In East Asia


China and South Korea are both in extreme manufacturing company bubbles.  If I were invested in either, I would get out, or short the stocks, immediately.

More troubling is the question of what will happen when an economic mega-power like China sees its bubble pop.

In general, a massive economic collapse usually favors political extremism, massive political change, and often militarism.  Intense suffering for the billions involved is also likely, and nothing that big can happen in a globally interconnected economy without have intense impacts on much of the rest of the world.

Will we live to see a day where our current bout of violence in the Islamic world and occasional spillover terrorism will seem like the “good old days”?

from Wash Park Prophet
via Denver News

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