Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: KyrosL who wrote (61945)	3/13/2010 4:23:58 PM
From: Hawkmoon	Read Replies (3) \| Respond to of 218005

The problem with Jubak's analysis is that Chinese local government debt backs actual investments from power plants to real estate. But there needs to be an ROI on those investments, right? Property that's not utilized/rented provides no return. It just sits there, decaying over time, requiring maintenance and care-taking. Power generation that can not be utilized because people can't afford to pay for it means those loans don't get paid. Furthermore, there's a tremendous amount of overcapacity in China's manufacturing sector at them moment. mpettis.com bloomberg.com Or course the Chinese disagree: chinadaily.com.cn That's probably a concern that's on the minds of the Chinese government, IMO. Hawk