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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 375.93-1.8%Nov 14 4:00 PM EST

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To: TobagoJack who wrote ()10/17/2008 11:09:59 AM
From: KyrosL  Read Replies (1) of 217800
 
Hi TJ. I worry about China. Here in the US, savings are coming back in fashion at the speed of light. I estimate that within a couple of years the US consumer will be back to high single digit savings rate from nearly zero in the last few years. US savings in the last month already went from zero to 3% or so. Retail sales are collapsing, and the vast majority of those goods are made abroad, mostly in China. Europe will follow and so will emerging markets. China is still depending on exports for a good part of its GDP. It has the reserves to spend domestically, but are its leaders bold enough to take the steps required to spend those reserves with abandon?
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