Comments on Saving to Inve$t: China Flexes Economic Stimulus Muscle

Well looks like the market discounted the stimulus...

2008-11-11T18:31:00.000-05:00

Well looks like the market discounted the stimulus and took the fact that China had to spend this money as a bad sign for their economy. I do think that over the next 2 years as all this spending takes places we will be on a strong growth trajectory again. We just need to hang on till then.

I like the post. I'll follow the plays you recomm...

2008-11-10T23:08:00.000-05:00

I like the post. I'll follow the plays you recommended.
It's nice to see that China is going to "beef" up their economy; I'm still not convinced yet that it's going to provide a boost to the stock market...right now in my opinion it's going to take a massive "sentiment" shift and confidence boost.

This is great new for China, but I don't think it ...

2008-11-09T23:52:00.000-05:00

This is great new for China, but I don't think it is good new for us. China's government has $2 trillion in it's sovern wealth fund. Most of which is investing in US-Bonds. To pay for this, they are probably going to sell US-Bonds, which will be bad for the dollar. Then the new construction project will consume a large percent of the worlds construction materials, driving up the prices of commodities like steal, wood and oil.

The big different between the US bailout and the China bailout is that they have the money in saving and we don't. We have to either borrow or print the money, and either way we are just delaying the problem - and quite possibly making it larger.