Comments on: If China Sneezes, Wall Street Will Catch A Cold

By: Mike Furst

Mike Furst — Tue, 02 Feb 2010 10:13:36 +0000

You wrote:

" . . .as the Bank of China has purchased hundreds of billions of dollars worth of corporate and government debt in Europe and the United States . . ."

Don't you mean the Peoples Bank of China (the PRC's central bank) as opposed to the Bank of China, one of the big four Chinese commercial banks? There is a huge difference between the two!

By: Carl

Carl — Tue, 02 Feb 2010 05:20:34 +0000

China is doing what Ben Bernanke should have done 4 years ago to avert catastrophe. The stupid political dysfunction in the US is gifting the world to China, and they don't have to do a thing. Those dedicated to the failure of the US administration are China's allies. They have already vaulted into the lead in alternative energy and infrastucture. The Bank of China is going to fund the contruction of a $1.5B wind farm in Texas, and apwr, a Chinese turbine maker is going to build it, in a consortium with US partners. They are also going to build a wind power parts plant in the same area, which is planned to need 3500 US workers. Meanwhile, the Neros in Washington fiddle on.

By: Robert

Robert — Mon, 01 Feb 2010 22:09:27 +0000

I thought we all agreed that "inflation" was defined as an inflation of the money supply. Are you a dissenter? China has increased the (yuan) money supply, but not to alarming extent. Chinese retail prices may be increasing due to increases in the standard of living which just about all commentators visualized for some time.

By: freebirdy

freebirdy — Mon, 01 Feb 2010 18:00:54 +0000

Your title is correct, in today's world market, all connect to each other, especially between U.S and China. While China growth is beginning strong and U.S improvement is catching up, both market's communication, coordination and help each other would be the best, hopefully not the intention or action of hurt, block and against each other, which causes the market fear, from your base point.

And the final point is the market situation is temparory, watch for the next run…

By: Reid

Reid — Mon, 01 Feb 2010 16:56:38 +0000

Would appreciate a more in depth analysis of your last two paragraphs. And is there a consensus among your other contributing editors? Keith, Martin, etc.

By: Jeff Pluim

Jeff Pluim — Mon, 01 Feb 2010 14:53:33 +0000

Way to go Jon. You totally missed the fact that China is pissed off with the US for selling Tiawan $6.5 billion in weapons. Remember how Ronald Reagan bankrupted the Soviet Union by forcing them into an arms race? Well the Chinese are a smart bunch of people. The USA just spit in Superman's face. Now all that China has to do is raise their interest rates and stop buying US T-Bills, and presto, the US economy collapses totally. With Obama trying to raid the pension money of Americans, it is clear that the government knows that it has to find some money to finance its deficits because China is no longer going to play ball. And I would guess that by now they have converted almost all of their USD portion of their foreign reserve into hard assets like gold and oil, etc. So how does it now serve them to continue to support the USD.
Big picture, Jon. Look at the big picture.

By: rod king

rod king — Mon, 01 Feb 2010 14:52:31 +0000

china indicates there are more cars and new buildings, yet the use of gasoline and electricity is down in china. the cihinese government is skewing the numbers.

By: m.v .durge

m.v .durge — Mon, 01 Feb 2010 14:38:17 +0000

it is good to know how and why china can change the course of global financial world.tnx

By: m.v .durge

m.v .durge — Mon, 01 Feb 2010 14:35:24 +0000

in indian contxt it is really worth reading such articles.tnx

By: chuck KinCannon

chuck KinCannon — Mon, 01 Feb 2010 13:49:34 +0000

I am confused. Since commodities and stocks are down again in a year where commodities were supposed to be king, is this a buying opportunity or catching a falling knife?