Article

2010-01-11 Economy

Contrarian Investor Sees Economic Crash in China

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Posted by gorb 2010-01-11 08:47|| || Front Page|| [6 views ] Top

#1 A warning indicator. The shuffling is about to become interesting in the game of monetary musical chairs.

Posted by Procopius2k 2010-01-11 09:10|| 2010-01-11 09:10|| Front Page Top

#2 I hope he's wrong. A crashing China will be an engine of destruction in the world economy & to their immediate neighbors.

Posted by Mitch H. 2010-01-11 13:48|| http://blogfonte.blogspot.com/ 2010-01-11 13:48|| Front Page Top

#3 So let's see, U.S. unemployment is officially at 10%. It is probably considerably higher when you consider underemployment and people who have fallen off the unemployment rolls. U.S. industry (if there is much left) is not hiring anyone. The federal government is about the only one hiring. This will probably slow or stop when the tax money runs out. You have to produce something to create wealth. The government does not create anything. If you only sell securitized junk in the market it eventually catchs us with you as it did in the current recession. If the American consumer is tapped out and doesn't have money to spend, our economy is not going anywhere in the long run. The banks seem to be sitting on TARP funds and not lending these funds out. But why would they provide credit since unemployment is so high and they are worried about getting the money back. China produces just about everything for us. If U.S. consumers buy less and less because they can't, China isn't going to be in a very good position. I can see that they China might have a crash--particulary if we have a "W" shaped double dip recession and can't buy their $hit. I guess I'm in a not very optimistic mood today.

Posted by JohnQC 2010-01-11 16:45|| 2010-01-11 16:45|| Front Page Top

#4 ION CHINESE MIL FORUM > CHINA GIVES APPROVAL FOR FREE TRADE ZONE ON HAINAN-TAO ISLAND.

Posted by JosephMendiola 2010-01-11 20:03|| 2010-01-11 20:03|| Front Page Top

#5 I think he is right and it will be worse than the article indicates.

China banks credit management is rudimentary and cascading credit defaults will make the GFC look mild in comparison.

Posted by phil_b 2010-01-11 23:21|| 2010-01-11 23:21|| Front Page Top

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