Ambrose Evans-Pritchard on the Chinese Bubble

[BigBagel]

http://www.telegraph.co.uk/finance/f...zi-scheme.html

Explores same territory as EJ's recent post.

[Slimprofits]

Re: Ambrose Evans-Pritchard on the Chinese Bubble

Ash, for what it's worth:

The central bank estimates that 20pc of fresh credit has ended up in equity markets.

[Slimprofits]

Re: Ambrose Evans-Pritchard on the Chinese Bubble

Pritchard's article relies heavily on Andy Xie.

also, from the most interesting (to me) from the comment section:

Ponzi scheme?
This year China is building 10,000 (yes, 10,000) hospital and clinics and over 10,000 km of highway. Basic free healthcare for 1 billion people will be in place within a decade. A bullet train network is being built that will be larger than the rest of world's combined. Tens of millions of people will move to the cities in that time; meanwhile consumer electronics and cars are spreading throughout the countryside.

For thirty years, western commentators have been chewing their pillows in puzzlement and frustration at China's failure to implode. They latch onto every piece of bad news or sceptical analysis, pump it up .. and disaster just doesn't happen. Remember when Chinese banks were all about to fall over, crippled by bad debt? They didn't. Remember when the Shanghai asset bubble was going to ruin the economy? It didn't. The export decline isn't going to either.

The CCP, arguably the most successful political organization in history, has decades of experience in economic management now. It isn't a five-year administration that is never in power long enough to get anything big finished. It takes a very long-term view and it knows what it is doing. It is a pity that western commentators understand it so poorly.

[Master Shake]

Re: Ambrose Evans-Pritchard on the Chinese Bubble

Pritchard's article relies heavily on Andy Xie.

also, from the most interesting (to me) from the comment section:

Sounds like another ChiCom apologist. Didn't Mussolini make the trains run on time and Hitler transform Germany from basket case to world power?

In bad times, authoritarian rulers have a certain appeal. Just make sure you don't get in their way or be found undesireable.

[Munger]

Re: Ambrose Evans-Pritchard on the Chinese Bubble

Sounds like another ChiCom apologist. Didn't Mussolini make the trains run on time and Hitler transform Germany from basket case to world power?

In bad times, authoritarian rulers have a certain appeal. Just make sure you don't get in their way or be found undesireable.

True. The better, western way to spend trillions in taxpayer money is to give it to insolvent banks. :rolleyes:

[metalman]

Re: Ambrose Evans-Pritchard on the Chinese Bubble

Sounds like another ChiCom apologist. Didn't Mussolini make the trains run on time and Hitler transform Germany from basket case to world power?

In bad times, authoritarian rulers have a certain appeal. Just make sure you don't get in their way or be found undesireable.

or live in an apartment building built by gov't cronies...

40% urban Chinese in survey show fear of house collapse

BEIJING, Aug. 4 (Xinhua) -- About 40 percent of urban Chinese said in a recent survey that an apartment building collapse might occur in their own cities, the China Youth Daily reported Tuesday.

The online survey conducted by the newspaper had polled 2,870 netizens. Only 17.6 percent of the respondents didn't have such fear while the rest said they were "not sure."

A 13-story apartment building under construction collapsed on June 27 in, killing one worker in the building.

[Slimprofits]

Re: Ambrose Evans-Pritchard on the Chinese Bubble

Sounds like another ChiCom apologist. Didn't Mussolini make the trains run on time and Hitler transform Germany from basket case to world power?

In bad times, authoritarian rulers have a certain appeal. Just make sure you don't get in their way or be found undesireable.

It reads like agitprop written by the Communist Party, which definitely makes it the most interesting comment to the article. I didn't say it was the most accurate. :cool:

[Master Shake]

Re: Ambrose Evans-Pritchard on the Chinese Bubble

True. The better, western way to spend trillions in taxpayer money is to give it to insolvent banks. :rolleyes:

Never said that was better, false dichotomy fan. Your idol, Mr. Munger, certainly seems to favor that approach though, being a large investor in Goldman Vampire Squid.

[Master Shake]

Re: Ambrose Evans-Pritchard on the Chinese Bubble

It reads like agitprop written by the Communist Party, which ..... :cool:

explains why Mungerfan like it.