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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (109512)	2/1/2011 7:52:16 PM
From: GST	1 Recommendation Read Replies (1) \| Respond to of 110194

<emptied out old regions> I am not sure that I would call them "emptied out old regions". The workshop town model based on millions of migrant workers has peaked, but in the Guangdong region where this is a staple of the economy there will still be 30 or 40 million people living and working around Guangzhou. The migrant worker economy is a remnant of the first wave of opening of the Chinese economy -- a model replicated all over China but raised to its highest expression in the southern end of the Pearl Delta. Guangzhou was the most advanced and prosperous part of China, with Hong Kong next door as its service center. The broad diversification of Chinese production and the ascendance of Shanghai as a center of finance and commerce has overshadowed Guangzhou in recent years. But in large measure, the end of the predominantly migrant worker model was ushered in years ago as labor shortages grew more acute and labor costs began to soar. Russ -- I don't dispute the this bears notice -- but it is a freight train that left the station years ago and the train keeps rumbling along - I don't see it as much more than a dramatic move in a country that is known for its multiple dramatic moves -- and I would not call it sudden or too surprising. A financial crisis on the other hand -- one similar in scale to our mess -- that could rattle world markets if credit from China to the US came to be at issue. Just offering my views.