Comments on: The China Syndrome 2009 http://www.senseoncents.com/2009/11/the-china-syndrome-2009/ Navigating the Economic Landscape Thu, 18 Mar 2010 16:57:50 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Larry Doyle http://www.senseoncents.com/2009/11/the-china-syndrome-2009/comment-page-1/#comment-7470 Larry Doyle Wed, 18 Nov 2009 11:52:24 +0000 http://www.senseoncents.com/?p=12956#comment-7470 Coe, The article itself is interesting but your added perspectives and insights further aid us as we navigate the economic landscape. Thanks for your wisdom and assistance!! Coe,

The article itself is interesting but your added perspectives and insights further aid us as we navigate the economic landscape. Thanks for your wisdom and assistance!!

]]> By: coe http://www.senseoncents.com/2009/11/the-china-syndrome-2009/comment-page-1/#comment-7469 coe Wed, 18 Nov 2009 10:43:05 +0000 http://www.senseoncents.com/?p=12956#comment-7469 LD - What an interesting article. Couple of my thoughts: o - I was talking to the CEO of a US business yesterday that has a fairly pronounced presence in India and Pakistan. Why? Because the labor costs in India are 17% of those in the US, and the same costs in Pakistan are pegged at 11%. Is that cause to say that Asia is stealing jobs? I'm sure that offers room for economic debate; o - I might add the prospect for some additional pain in the US commercial mortgage sector as yet another boil to lance - i.e. the structural wreckage of the credit bubble isn't nearly finished here in the US. Consider the fact that the Feds have closed 123 banks when the ultimate tally should crest at 1500 or so. What happens to all those employees and their families and their communities? What about their small business customers - who steps up in the vacuum created? o - Europe's banking two-step has been similarly fascinating to watch unfold. Take note of Barclay's recent acknowledgement of some serious credit write-downs. Was this a eureka moment? a second coming of the enlightenment? Does anyone believe they haven't been manipulating the recognition timing over the past two years? What about the German Landesbank system? and the two or three big Spanish banks? keep crisscrossing the UK and the Continent and the saga doesn't end. By the way, many of these European firms have huge operations here in the US. What will become of ING Direct? Should RBS be forced to divest Citizens Financial? There are many plot lines to play out and a world of additional pain to absorb; and lastly, o - Shouldn't we pay very close attention to China on every imaginable level? They have nearly 4x our population, are funding us way beyond healthy levels and still there is talk of asking them to get more involved in providing liquidity for our domestic mortgage industry! The political and cultural chasm on many key issues (trade, human rights,...) seems intractable... Yes, LD, there certainly is plenty of food for thought. Keep at it with your challenging posts! LD – What an interesting article. Couple of my thoughts:
o – I was talking to the CEO of a US business yesterday that has a fairly pronounced presence in India and Pakistan. Why? Because the labor costs in India are 17% of those in the US, and the same costs in Pakistan are pegged at 11%. Is that cause to say that Asia is stealing jobs? I’m sure that offers room for economic debate;
o – I might add the prospect for some additional pain in the US commercial mortgage sector as yet another boil to lance – i.e. the structural wreckage of the credit bubble isn’t nearly finished here in the US. Consider the fact that the Feds have closed 123 banks when the ultimate tally should crest at 1500 or so. What happens to all those employees and their families and their communities? What about their small business customers – who steps up in the vacuum created?
o – Europe’s banking two-step has been similarly fascinating to watch unfold. Take note of Barclay’s recent acknowledgement of some serious credit write-downs. Was this a eureka moment? a second coming of the enlightenment? Does anyone believe they haven’t been manipulating the recognition timing over the past two years? What about the German Landesbank system? and the two or three big Spanish banks? keep crisscrossing the UK and the Continent and the saga doesn’t end. By the way, many of these European firms have huge operations here in the US. What will become of ING Direct? Should RBS be forced to divest Citizens Financial?
There are many plot lines to play out and a world of additional pain to absorb; and lastly,
o – Shouldn’t we pay very close attention to China on every imaginable level? They have nearly 4x our population, are funding us way beyond healthy levels and still there is talk of asking them to get more involved in providing liquidity for our domestic mortgage industry! The political and cultural chasm on many key issues (trade, human rights,…) seems intractable…

Yes, LD, there certainly is plenty of food for thought. Keep at it with your challenging posts!

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