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MICHAEL PETTIS: Here's How You Know China Is Overinvesting Michael Pettis, China Financial Markets | Dec. 3, 2011, 10:26 AM | 4,011 | 7 Michael Pettis For years I have been arguing that the Achilles heel of the Chinese growth model is the unsustainable rise in debt that comes as a necessary consequence of capital misallocation fueled by bank lending. Capital misallocation, I argued, was the nearly inevitable consequence of high investment growth over many years in a system in which price signals are severely distorted and there is political incentive to maximize economic activity in the near term. If...

<p>DETROIT -- Not since the 1920s have American consumers had so many choices when shopping for a new car or truck.</p> <p>Twenty-one American, British, German, Swedish, Japanese and now South Korean automobile companies offer 41 brands comprised of more than 1,000 car and truck models in total.</p>