Sunday, October 7, 2012

Pettis China

M Pettis again:
"China did in fact have a banking crisis, but the growth impact was more than offset by a surge in

lending which simply set the stage for the next banking mess.
It is as if you saw a middle-aged man in terrible physical shape running a marathon, and you
predicted that after five or six miles he would be forced to quit. If however he took out a syringe and
shot himself up with crystal meth, he would be able to continue running a few more miles, but this
doesn’t mean that your analysis and prediction were wrong. It means that in a few more miles he
will be worse off than ever (or will have to take an even bigger dose of crystal meth)."

Slowdown when? 

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