The real economic quake coming: China

[Shizzles]

China's Debt Bomb

China Steers Toward a Subprime Economy - Bloomberg View

I'm not going to position myself as an expert on this on any level, but this sounds very, very disconcerning.

[Tall Traveler]

1000 times more concerning than a country in southern Europe would be a mid level GDP insignificant state in the USA.

I worked in China and my impression is that they are growing at a rate that would be hard to sustain and very costly to continue development at that rate. Some economic slowing is probably a good thing but there system has not stood the test of time and corrections the Western systems have.

Two big issues that China has on the horizon are the horrible pollution that continues to get much worse, the cost to fix will be enormous. Their age demographics are such with the 1 child policy that they will have a large retired elderly population with few workers to pay for their retirements.

[msgsing]

I've read several times that many international companies are cutting back staff in China. The pollution is so intense that many of their staff never go out except to commute to and from work.

There was also something on CNN today about the wild stock market speculation. Statement was made that the Chinese stocks turn over almost 100 % every 30 days.

[Chango]

China has a stock market much like America had in 1929.... I read the vast majority of their stockholders are average individuals who jumped on the stock bandwagon and will now loose it all.

Still, neither China or Greece are the cause of the next big financial collapse, they are merely the first "weak links" breaking in a much bigger global-sized nightmare.

[BigDGeek]

Can't even pretend to care.

We're all screwed anyway.

I'll be in front of the TV with a bowl of popcorn. When the mushroom cloud comes, I'll step outside to watch and be vaporized.

[The Thomas J]

Worse case scenario for us is that a cash starved China calls in the IOU's the United States owes them and that will sink our bond market.....Also hurts Russia in a huge way as well as they hold a lot us bonds as well. The effects of this would be felt for years to come globally in every aspect of our markets since so many blue chip companies are so heavily invested in China now.

[justanokie]

Originally Posted by The Thomas J

Worse case scenario for us is that a cash starved China calls in the IOU's the United States owes them and that will sink our bond market.....Also hurts Russia in a huge way as well as they hold a lot us bonds as well. The effects of this would be felt for years to come globally in every aspect of our markets since so many blue chip companies are so heavily invested in China now.

Naw. If China didn't rollover their bonds or stopped buying/started selling treasuries the FED would just hit the print button and buy them all up.

The Politburo could then have plenty of cash to slosh around and pass all kinds of rules to make the economy grow. Like they just did for the stock market. Stocks start crashing and they make it illegal for big holders to sell, they tell all margin brokers to accept houses and apts as collateral (which are also in a bubble and overvalued but who cares its all just some numbers on a paper right). Simple right.

Of course they can always just print their own money.....this is always preferable.

If our market starts to get woozy then the FED can hold the print button down a little longer and give it to the Plunge Protection Team.

Honestly based on all the technicals and with such strong fundamentals along with our strong recovery, low inflation, low unemployment I don't see a real stock market correction until at least DOW 30,000.

Just BTFD.