link: http://ift.tt/1Msl9cQ
Spending more money to maintain than to grow. The end is nigh.
- ChicagoSchooler
> it's effectively bailing out its previous bailout. Jig is up. > it may already be under way. I say they collapse this year. Will see if the regime changes or if they crack down.
- sean_incali
Nobody believes the PBOC's numbers. They really have just been making them up for years (decades). If the Chinese export based economy contracts, other regional economies will be more than happy to pick up the slack. Potential for market capture by emerging African economies. Net positive there. Outsourcing manufacturing to China has become much more expensive resulting in people already shifting away from China to other manufacturing centers. A downturn may reverse this trend in by slowing or reversing wage growth. Which may end up benefiting the MF sector in the long run. The market panic in China is a correction that any institutional investor should have seen coming years ago, those mainly affected will be a relatively small number of individual investors. Do not expect to see large scale devastation. Any offshore effects should likely be contained in the region. Outside of luxury brands, few western companies import on a large scale to China. The sky is not falling.
- MammonAnnon