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Old 02-09-2011, 10:25 AM
Wiseman1 Wiseman1 is offline
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Originally Posted by Unregistered View Post
It's hard to compare with 1997. In 1997-8, we had the Asian Financial Crisis, China wasn't strong yet, and US and Europe were still booming. Now, it's the reverse - that's why some are arguing that Asia will boom while the west crashes.

Whatever you do, just be careful with what you do - prepare for the worst and hope for the best.
I would say get real and face the facts - alot of Asian "chauvinists" like to believe and propagate the view that now is the Asian century and Asia would grow while US/EUR would tank, nothing is further from the truth. The world is much more interconnected now than ever, there is no such thing as the East keeps growing comfortably while the West is suffering. Asia cannot survive if US/EUR stop growing economically and stop buying Asia's exports.

China, often tipped to be an engine of growth for Asia, is dependent wholly on churning out exports to the West. She herself is a bubble in the making, no country can keep growing at 10% YOY for 20 years at a stretch, she is no different. The bubble must ultimately burst. Discount by at least 30% whatever rosy numbers you are seeing coming out of China, these guys are masters in cooking the books.

For those who insist the property market and prices are fundmentally sound, well believe at your own risk.....no one is forcing you to think otherwise.

I would sit on the sidelines and see how the "exciting" drama unfolds when interest rates spike and people start to default on mortage....hahaha

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