2009-08-18 — zerohedge.com
"Financial commentators are obsessively debating whether the recent rise in the Chinese stock market means there’s a bubble — and if so, when it’s going to burst. My take? Who cares! What happens to the broader Chinese economy is what we should really be watching. It will have a far-reaching impact on the rest of the world — much more far-reaching than a decline in stocks."
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tvsterling at 09:02 2009-08-19 said:
There a lot of interesting parallels here with our situation in the US. We cajoled people into bad loans (the banks on the consumers, the government on the banks). The Chinese are ordering the bad loans outright. Both country's have a big problem with disgruntled citizens; China seems to fear it's people more & probably with good reason. That vast population out of control would be awesome indeed. On the other hand we have manufacturing undercapacity while they have overcapacity. An interesting point-counterpoint. I hadn't even thought about the Chinese lending us the money to buy their goods. I gathered that whatever happens we two are joined at the hip. I'm glad I now know that China hasn't figured out a way to defy financial gravity. Permalinkadd a comment | go to forum thread
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