Told y’all that the Chinese market was about to bust.
By Daniel at 17 August, 2009, 11:23 am
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We’ve only recreated bubble equity markets all over.
tarn
Story: US Stocks Edge Lower As Traders Lock In Profits (6 days ago)
In reply to:Jeez
>>India is not an export market less than 15% IIRC and also even the pure export markets such as Singapore have posted better gdp numbers.
That’s my point that India is not big.
And certainly not rich enough to consume .
GDPs plunged around the world, that Singapore, the US, etc. bounced a little is not worth mentioning.
In a study of US and foreign economies around the world compared to the Great Depression, the slopes of initial declines in the present have been much steeper. We’re only bouncing to meet the 1930s slopes.
>>Many people predicted that export markets like China will fall with america but the big mistake was failure to grasp domestic consumer spending.
China did fall.
The government is pumping money into the economy to prop it up as you yourself noted.
>>Eventually this credit bubble will burst but they have another 5-10 years before that happens (American level leverage).
China’s bubble is massive for what it is.
You can’t compare it to American level when the economy itself is not at the American level.
>>Yes their economies aren’t bigger than US but their growth more or less compensates even for a severe depression in US.
China needs to export to grow. That’s why it’s an export economy. With reduced exports, the rate of growth will be limited.
You somehow fail to grasp the connection between no export and hence the government needing to pump money into the economy to keep it from completely collapsing.
To argue that China’s much smaller economy needing to be propped up by the government for a soft landing, because of the decline in export to the US and the world, will then also prop up the US and and world economy is a circular argument.
Ever heard of the perpetual engine?
Do the laws of thermodynamics ring any bell?
tarn
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