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I'm pretty sure that fundamental economics are the same the world around - if there's no end consumer for your product, then there's a loss somewhere. It doesn't matter who covers the loss, but there's still a loss and it's not correct to say that no-one cares.

The biggest fallacy I've heard recently about this housing situation is the oft' repeated "things are different in China" - you can't argue with basic maths like this. Surely the 2008 economic crisis was triggered by a similar situation, with western banks and investors ignoring fundamental economic equations?




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