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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 414.48+0.7%Jan 9 4:00 PM EST

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To: TobagoJack who wrote (45865)1/27/2009 4:04:09 AM
From: energyplay  Read Replies (2) of 219198
 
It looks like bank stocks are up in Europe and the UK.

I don't know if the world economy will officially have depression - I expect more like a recession until Q4 of 2009 and then a soft, almost stagnant recovery for almost another year.

I expect some major efforts to change the US economy, the list is far too long to discuss here.

The one obvious big change that China needs is to expand internal markets. Saving 30% instead of 50% will still provide all the capital needed for development.

If China had a much larger internal market, that would mean that China could skip this recession. Creating such a market in the near term might enable China to avoid maybe 2 out of the next 4 recessions.

The export growth ONLY model worked for a long time, but it now means that China will feel dip in the world economy.
every dip in the world economy.

Besides, getting more consumer goods, especially inland, will make people feel much calmer.

What do you think China will do to build the internal market ?
That's the 500 billion dollar question.
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