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To: ms.smartest.person who wrote (1270)5/21/2001 8:52:29 PM
From: ms.smartest.person  Read Replies (1) | Respond to of 2248
 
Morgan Stanley Warns of Possible Bubble in China Economy
May 21, 2001 - 12:16:41 HKT
Quamnet News Service
Morgan Stanley Dean Witter warned that it may be China's turn soon to experience a huge bubble, as slow global growth could turn multinational companies' attention even more toward China.

In a note to its clients, Morgan Stanley economist Andy Xie said the US economic recovery could be W-shaped in the next three years, and that markets will probably rally several times on false hopes.

"A winning investment strategy would be to ride on false hopes but avoid reality checks," said Xie. "US policymakers are throwing various kinds of stimulus at the economy to get it to turn up. However, the current level of living standards does not seem sustainable. A policy of stimulus should succeed in getting the economy to rebound but gravity is likely to take over next year."

quamnet.com