Global equity markets are teetering on the edge of total collapse, as the US, the only real engine for world growth, grinds to a halt.
Stephen Roach of Morgan Stanley recently pointed out that the US consumer was responsible for 64% of the growth in the world's economy from 1995-2001. During this time, the entire world, and especially Asia, spent huge amounts on factories to supply seemingly infinitely-growing US consumption.
The massive global capacity overhang is the main problem. These
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