Posted on 07/21/2010 4:11:19 PM PDT by TigerLikesRooster
Asia’s Dr. Gloom: China's Stocks Will Crash Soon
Wednesday, 21 Jul 2010 08:37 AM
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By: Dan Weil
Economist Jim Walker was dubbed Asia’s “Dr. Gloom” in 1996, and his views about China continue to fit that bill.
Chinese fiscal and monetary stimulus have given life to many corporations that are in trouble below the surface, says Walker, whose one-man firm Asianomics is based in Hong Kong.
"There are an awful lot of companies that don't make any money in China, and they need to go," he told Forbes Asia.
Major manufacturing cities are suffering labor shortages, thanks to the real estate bubble that has drawn away workers and will ultimately burst, says Walker, formerly chief economist at CLSA (Credit Lyonnais Securities Asia).
(Excerpt) Read more at moneynews.com ...
And yes, this is happening with CHINA, and people WILL hear about it.
In my opinion, it should be an issue in the midterms, and particularly in 2012 in the Presidential Primaries (if people in the US still have jobs and we arent all in breadlines).
2. Petition Congress (donations/bribes) to re-open a few of the mines here (need pretty deep pockets, though)
3. Move production of those rare-earth-based subcomponents to China, and do final integration work here
Well... that would be the first thought. We are actively considering moving our production to China.. but, in the end.. I think, we won't.
The product we make... catalyst, not electronic sub-components.. is not made by any company within China. So, we're ALL in the same boat.
I think... we'll all suffer until mid-2011, when sources start to open up in other areas... like Australia.
It seems you are right, but what caused the change?
Wow... that's the nicest thing anyone's ever said to me on FR! :-) Right back at ya!
I do get around.... Will be spending time in Amsterdam, Berlin, Munich, Zurich, Bogota, Salvador, and Santiago all within the next 30 days.. plus, a little vacation time in Vegas! :-)
The CHINA is definitely playing hardball... they are NOT our friends. Anyone who thinks they are... is simply not paying attention. The Japanese always admired American culture... the Chinese do not. They have their own...and, it's a VERY aggressive culture.
The problem with China is... they make decisions abruptly...Businesses have a hard time responding to their fickleness. They also have a HUGE problem developing among their own people:
1) They are tired of having pollution dumped on them without thought, and
2) They've figured out that they aren't being paid what they're worth.
China has HUGE labor issues on the very near horizon.
Practice... they've been at this for 30+ years now.. and, they're pretty damned smart.
Tim’s response is quite on-target. And 3000 years of history. China’s always been very capitalist in its economy, the 30 years of Mao were really an aberration, and Deng Xiaopeng shook China from its slumber.
Not to mention a great respect for wealth, wealth creation, and a desire to learn how to build it. There’s a reason that Friedman’s “Capitalism and Freedom” is a big seller in China (in Mandarin, no less)!
In essence: a culture that rewards risk-taking and respects and admires success. The opposite of what we have in the US right now!
That, unfortunately, is what many companies are hoping for. We’ll see if China doesn’t lock up Australia production as well.
At least operating a business in Australia is a bit easier than the US! Not as easy as most Asian or South American companies, but not impossible...
Agreed with ALL that you said, about Asia.
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