http://dailyreckoning.com/china-or-bust/ Economic News, Markets Commentary, Gold, Oil and Investing Strategies. Sat, 26 May 2012 08:56:41 +0000 hourly 1 http://wordpress.org/?v=3.3.2 http://dailyreckoning.com/china-or-bust/#comment-46741 Eddy Widjaja Fri, 01 Jan 2010 01:44:30 +0000 http://dailyreckoning.com/?p=21410#comment-46741 Response from Eddy Widjaja, Indonesia : Before the crisis, most of the western governments had ever growing deficits as a result of overspending. When the bubble burst, they expanded the deficits even more. In doing so they were creating the conditions for a new super-bubble. In pre-crisis China the government had a budget surplus and exchange reserves of more than $ 2 trillion. When the crisis hit they had the resources to finance the downturn. They could adopt a more relaxed monetary policy by lowering interest rate and expanding government spending backed by real resources, not by creating money like their counterparts in the west. So in my opinion it is not China that is in danger of a bubble-bust but the western world and they could only avoid the blow-up at the cost of more unemployment or - if they are lucky - to have a pover jobless recovery. Regards, Eddy Widjaja Response from Eddy Widjaja, Indonesia :
Before the crisis, most of the western governments had ever growing deficits as a result of overspending. When the bubble burst, they expanded the deficits even more. In doing so they were creating the conditions for a new super-bubble.
In pre-crisis China the government had a budget surplus and exchange reserves of more than $ 2 trillion. When the crisis hit they had the resources to finance the downturn. They could adopt a more relaxed monetary policy by lowering interest rate and expanding government spending backed by real resources, not by creating money like their counterparts in the west. So in my opinion it is not China that is in danger of a bubble-bust but the western world and they could only avoid the blow-up at the cost of more unemployment or – if they are lucky – to have a pover jobless recovery.
Regards,
Eddy Widjaja

]]> http://dailyreckoning.com/china-or-bust/#comment-45716 ken Tue, 22 Dec 2009 16:29:47 +0000 http://dailyreckoning.com/?p=21410#comment-45716 Sure, let them tighten credit. Watch the Tiger turn into a kitty cat again. Don't let the US housing demise spark this paranoia in China. Don't forget, the US banking industry used to give out interest only mortgages!!! In China now, the developers need 50% down. Quit making these crazy comparisons to the US and let China run. Heck, they've barely scratched all the land they have to sell. Sure, let them tighten credit. Watch the Tiger turn into a kitty cat again. Don’t let the US housing demise spark this paranoia in China. Don’t forget, the US banking industry used to give out interest only mortgages!!! In China now, the developers need 50% down. Quit making these crazy comparisons to the US and let China run. Heck, they’ve barely scratched all the land they have to sell.

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