The government has decided to keep inflating the bubbles with capital injections that wind up temporarily keeping stocks afloat and ultimately wind up feeding insane real estate bubbles. This has gone on more or less for the last few years, starting with stimulus in 2008. Retail is already taking a huge hit on the ground (not just iPhone sales have dropped off), and once those bubbles pop...well, the government will do anything it can to keep that from happening, including inflating them higher (which can't work forever, right?).
>The government has decided to keep inflating the bubbles with capital injections that wind up temporarily keeping stocks afloat and ultimately wind up feeding insane real estate bubbles
Ya, just imagine if the US, instead of crashing in 2008, decided to feed their bubbles with way more debt-fueled stimulus than they did. That is basically where China is today.
More than $1.5 trillion to Detroit and $1 trillion to Wall Street (plus the usual subsidies to all other sectors, including some trillions of military spending).
Besides, at least China has actual manufacturing jobs and exports instead of tons of service jobs...
That was all paid back, however. And it is all accounted for on the books vs. shoved away in some local government/SOE joint venture.
Anyways, America has actual IP jobs and a relatively transparent financial system to compensate. We just have wild guesses about what is going down on the ground here.
