The question we need to start asking ourselves is what could possibly prevent these markets from falling further?
|TRADE SQUEEZE: High inputs = low outputs|
From a fundamental point of view, both Japan and China have been on our watchlist for months now for different reasons. Japan because ts economy is shattered and has few prospects of becoming the economic tiger it once was, as dwindling global natural resources with higher prices, and increased foreign competition in export markets are impossible hurdles to overcome with mere clever technology. China,meanwhile is a massive credit bubble waiting to explode. The transparency, corruption, shadow banking and other leveraged issues are set to make 2008 look like a tempestin a teapot.
|FUNNY MONEY - the shadow knows|