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<blockquote data-quote="vantexan" data-source="post: 5142798" data-attributes="member: 24302"><p>To be fair, allowing the practice of capitalism there has raised hundreds of millions out of poverty.&nbsp; But over half a billion live in poverty.&nbsp; Ricky thinks that it was socialism that improved their lives but they were going nowhere until capitalism was allowed.&nbsp; Their problem is they have grown too fast and as long as there was high growth no attention was paid to sound financial practices.&nbsp; Not even certain they understand the concept of sound financial practices.&nbsp; To give an example in China copper is considered semi precious.&nbsp; It&#039;s used as collateral for many loans and there are tons of it sitting in warehouses.&nbsp; Problem is the same copper used as collateral for one loan is often used for other loans.&nbsp; If a loan isn&#039;t repaid and the collateral is taken then any subsequent loan failures aren&#039;t covered.&nbsp; It&#039;s a financial house of cards waiting to collapse.&nbsp; And the current real estate crisis is likely to cause it.&nbsp; A giant ponzi scheme.</p></blockquote><p></p>

[QUOTE="vantexan, post: 5142798, member: 24302"] To be fair, allowing the practice of capitalism there has raised hundreds of millions out of poverty. But over half a billion live in poverty. Ricky thinks that it was socialism that improved their lives but they were going nowhere until capitalism was allowed. Their problem is they have grown too fast and as long as there was high growth no attention was paid to sound financial practices. Not even certain they understand the concept of sound financial practices. To give an example in China copper is considered semi precious. It's used as collateral for many loans and there are tons of it sitting in warehouses. Problem is the same copper used as collateral for one loan is often used for other loans. If a loan isn't repaid and the collateral is taken then any subsequent loan failures aren't covered. It's a financial house of cards waiting to collapse. And the current real estate crisis is likely to cause it. A giant ponzi scheme. [/QUOTE]

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