Quote:

And just to emphasize what our competition is doing and why I am again on the right side of this issue:

China on Sunday announced a huge economic stimulus package aimed at bolstering its weakening economy and perhaps helping fight the effects of a global economic slowdown.

In a sweeping move at a time when major projects are being put off around the world, Beijing said it would spend an estimated $586 billion by 2010 on wide array of national infrastructure and social welfare projects, including constructing new railways, subways, airports and rebuilding communities devastated by an earthquake in southwest China in May.

The package, announced by the State Council Sunday evening, is the largest economic stimulus effort ever undertaken by the Chinese government and would amount to about 7 percent of the country?s gross domestic product during each of the next two years.

Beijing also said it was loosening credit and encouraging lending as part of a more ?pro-active fiscal policy.?

http://www.nytimes.com/2008/11/10/world/...amp;oref=slogin

China's infrastructure is going to own ours and thus they will be eating our lunch in the future if we don't make similar investments. This isn't bailing out conglomerates, this is looking to the future, not next quarter's earnings report. And if you think China is a bunch of "commies", you should remove yourself from the debate as you simply don't get it.



but you make it sound like China is some uber developed nation. Outside of Shanghai and Beijing (hong kong and macao dont count) the major of the country is a complete sewer and shit pile.

They NEED to pour cash back into their infrastructure while they have it or face a potential revolution or get stuck in the same rut.

They are redeploying all of their cash reserves into infrastructure which is exactly what they should be doing. They NEED to create its own selfsustaing economy and country, much like the U.S. and a few other major countries.

Their economy is so dependent on outside growth and exportation of goods they will feel this credit crunch like the rest of the world. They also are facing potential huge problems in the inflation and unemployment front.

This is a theme that is characteristic of emerging markets in general. The 4 largest emerging markets are Russia, Brazil, China, and India. Two saw their success as the prices of commodities went north (China and Brazil) and two are socialist regimes who will not hesitate to nationalize industry to retain power (China and Russia). At least in India you have a tort system based on English law (no matter how slow and painful it may be)....

China will sure be an interesting story over the next 6 to 12 months. 300 million people moving into the city looking for jobs, growth slowing at an alarming pace, and a new US President.