Monthly Archives: August 2009

China continues to correct from "deep bubble territory"

The Shanghai Index had another massive sell-off this morning, falling by a further 6.7% and making the total loss since August 4th now 23.2%. Chinese analyst Andy Xie was interviewed this morning on Bloomberg Television. He points out that “a … Continue reading

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So much for the 70% consumer-dependent part of GDP…

I think it is clear that Western consumers are in the midst of a generational downshift in consumption. “Spend less and save more” is the new religion of the west and this behaviour is likely to continue en mass for … Continue reading

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Realistic talk on China's Consumption Challenge

Aggressive increases in government spending and investment by state-owned enterprises has cushioned the impact of weak exports. But those gains have not been matched by comparable increases in private consumption. Spending by Chinese households as a percentage of GDP is … Continue reading

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The song remains the same: speculating with easy credit

The trouble with virtually-zero interest rates and free flowing government money is that “dumb capital” finds its way into wild speculation. This eventually causes imbalance and risks for those that would be legitimate investors and consumers. This article from the … Continue reading

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Bob Shiller on the recovery and animal spirits

Shiller was on CNBC this morning taking about the possibility that this economic recovery may be exceptionally weak for years to come: “”It's clearly not over yet,” he said. “It's not obvious that people are really ready to spend again. … Continue reading

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BNN this morning at 8:35 am

Ms Park was a guest this morning on BNN with Michael Kane at 8:35am. A clip of the show is available on the BNN website.

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