Peter:
There have been massive lay-offs and plant closing across a broad sweep of China's industries (mining, petro-chemicals, textiles, steel, etc.). The numbers are simply staggering. The Chinese government probably worries more about unemployment than any other topic.
The problems are multi-fold, but the major difficulties relate to an insolvent banking system, and unsaleable, massive inventories (e.g. black and white televisions). China has been trying to avoid a devaluation, but it appears inevitable (see black market exchange rates,....these guys are never wrong).
When (not if) China devalues, Asia will be thrown into turmoil again.
It is more than unfortunate.
Best, Earlie |
