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Tuesday, September 18, 2012

How China's Rehypothecated "Ghost" Steel Just Vaporized, And What This Means For The World Economy | ZeroHedge

How China's Rehypothecated "Ghost" Steel Just Vaporized, And What This Means For The World Economy | ZeroHedge: "In conclusion we can only add that we hope none of this comes as a surprise to our regular readers: we have been warning for years that i) the inventory of the world's credible assets is literally evaporating in absence of technological efficiency and CapEx spending (which is also the reason for the ECB's endless lowering of collateral requirements) and ii) illegal rehypothecation of assets, which infinitely dilutes claims on real assets, can and will lead to total losses even for investors who thought they had strong collateral backing."

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