Companies could pay workers less in America due to the threat of outsourcing, and buy goods made in China much more cheaply, leaving them flush with excess capital.This capital was circulated back into the market in the form of "asset bubbles," specifically putting money into the real estate investment market.The upshot is that the housing boom will last only as long as rates stay low and consumers can continue to spend, and as long as China is willing to continue to buy millions… [read post]