The Three Toughest Questions For China Bulls | ZeroHedge

"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works."

-John Stuart Mill-

China is facing unprecedented problems as decades of central planning misappropriated investment into government favored areas. This is similar to what happened in the USA where government policy promoting home-ownership created over investment in this consumer durable and ultimately led to an economic disaster. The falling prices were not the actual problem, falling prices was just the process in recognizing that previous mal-investment.

China too will ultimately face the costs of misappropriating investments and this will create a serious financial calamity.

The Three Toughest Questions For China Bulls | ZeroHedge