CRASH I’d originally predicted that the China bubble would pop over Christmas of

http://www.nytimes.com/2011/12/19/opinion/krugman-will-china-break.htmlCHINA CRASH

I’d originally predicted that the China bubble would pop over Christmas of 2010 — a year ago now — based upon the relationship between prices, inventory and incomes. I’m not sure I was wrong about when it popped, even if it’s taking a long time to become visible. But It’s certainly happening right now. In 50 of 70 Cities prices are in free fall. What I don’t know, is how their economy will ‘recalculate’ prices and actions. Totalitarians are great at spending money, but now people are schooled, trained, invested, and habituated to a future that can’t exist. Recalculating a new future is going to be expensive and likely painful for them, as much as it has been for us.

2012 will be a very, very, interesting year. It’s the 1870’s and the 1930’s all over again. And we’re finally seeing the big guns in economics calling this a DEPRESSION. Finally.