Tag: stimulus

The Chinese credit crisis gets messy

The Chinese credit crisis gets messy

No one has denied that China was overdue for a credit shakeout due to the Chinese government’s desire to stem excess credit growth as the economy rebalances. The question has always been about how much of a shakeout Chinese policy makers are willing to accept and how destabilizing the shakeout would get regarding economic growth and employment. We seem to be reaching another level in terms of jitters with bank runs and commodities sector bankruptcies. Some thoughts below

Economic and market themes: 2014-03-21

Economic and market themes: 2014-03-21

Sanctions because of the Crimean crisis have had less economic impact than private portfolio preference shifts. However, as Ukraine moves into the EU sphere, further actions against Ukraine could be more far-reaching. China has moved toward stimulus to avoid a hard landing Signs are abundant that risk assets are overpriced and that de-risking is in order Wage and job growth […]

Marc Faber: China’s Malinvestment Unwind ‘Will Be a Disaster’

Marc Faber: China’s Malinvestment Unwind ‘Will Be a Disaster’

Marc Faber appeared on Bloomberg Television yesterday to discuss the Chinese economy. While Faber generally seems to be a long-term bull on China, he had some disquieting things to say about the extent of malinvestment in China due to the recent round of government stimulus and infrastructure-oriented investment. Faber told Trish Regan and Matt Miller “I think that we had […]

On the Italian Prime Minister’s view of austerity

On the Italian Prime Minister’s view of austerity

Italy’s new Prime Minister Enrico Letta is touted as a man who could change the politics of the EU. The Daily Telegraph in the UK even headlines his initial policy speech as “Italian PM Enrico Letta urges move from austerity to growth”. But is that really the case? I don’t think it is the case. And I will point to language in his speech for why as I develop a few background issues on Italy.

Europe again

Europe again

I am not going to say a whole lot here in this post because I have been writing non-stop about Europe of late. I just want to share the European links with you. I think what the links show is that the European paradigm is in transition from front-loaded austerity to back-loaded austerity. This is something I have remarked on at length in the past. What I would like to know is what impact this move is going to have on bond and stock prices.