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Residential buildings are seen in Wuhan, Hubei province of China, in this July 24, 2012 file picture.
Residential buildings are seen in Wuhan, Hubei province of China, in this July 24, 2012 file picture.
(DARLEY SHEN/REUTERS)

CARL MORTISHED

The global financial system is drowning in capital

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Does the world have too much money and too few good uses for it? Five years after the financial crash ripped huge holes in the financial system, we are again grappling with the risk of bubbles. In Canada, Finance Minister Jim Flaherty has taken steps to cool the mortgage market, fearing the collapse of a 10-year house price boom. The Chinese continue to pump money into property, confounding government efforts to restrain real estate speculation. And in Britain, sudden sharp increases in house prices in London have provoked a political row about the wisdom of government financial incentives to kickstart the building of new homes.