Showing posts with label CHINA. Show all posts
Showing posts with label CHINA. Show all posts
Monday, September 10, 2012
Thursday, July 22, 2010
Three Gorges Dam - Raging Flood Waters
This is off topic, but bears a mention nonetheless.
The Three Gorges Dam is located on the Yangtze river in Hubei province China
more details on the Three Gorges Dam (For anyone who didn't know about it yet, this is one MEGA hydro electricity + flood control project in China)
Torrential rain, flooding and rising water levels resulted in the authorities needing to release water and monitor water levels closely.
Just goes to remind us of the humongous power of nature and her ability to test and sometimes defeat mankinds' ever improving technological and construction engineering skills.
So far, the Dam has survived its massive stress test.
Let's hope the raging waters subside & everything ends peacefully and that loss of life stays at a minimum.
The Three Gorges Dam is located on the Yangtze river in Hubei province China
more details on the Three Gorges Dam (For anyone who didn't know about it yet, this is one MEGA hydro electricity + flood control project in China)
Torrential rain, flooding and rising water levels resulted in the authorities needing to release water and monitor water levels closely.
Just goes to remind us of the humongous power of nature and her ability to test and sometimes defeat mankinds' ever improving technological and construction engineering skills.
So far, the Dam has survived its massive stress test.
Let's hope the raging waters subside & everything ends peacefully and that loss of life stays at a minimum.
Thursday, June 3, 2010
China leads global equity market downward - AGAIN !!!
Once again, the Chinese Equity market seems to be leading the ongoing correction in global equity markets.
The Chinese Equity market topped out in July 2009.
The S&P 500 hit its 'bear market' rally / recovery highs in April 2010 !
Markets have been as volatile as ever, and fundamentals have shown no significant improvement.
We are moving from an individual & corporate debt crisis to a sovereign debt crisis.
The so called '' sub prime '' sovereign debt of countries like the PIIGS is already starting to stress out global bond markets.
How will the already weakened PIIG nations cope with the austerity measures, and still continue to support the global economic recovery?
Meanwhile, the Chinese government has been tightening liquidity as it tries to cool down a bubbling real estate market in urban China.This could mean tougher business conditions in the industrial metals and ores sector if the Chinese economy starts to slow down.
The rally is clearly getting rather long in the tooth, and may be running out of fuel!!!!
The Chinese Equity market topped out in July 2009.
The S&P 500 hit its 'bear market' rally / recovery highs in April 2010 !
Markets have been as volatile as ever, and fundamentals have shown no significant improvement.
We are moving from an individual & corporate debt crisis to a sovereign debt crisis.
The so called '' sub prime '' sovereign debt of countries like the PIIGS is already starting to stress out global bond markets.
How will the already weakened PIIG nations cope with the austerity measures, and still continue to support the global economic recovery?
Meanwhile, the Chinese government has been tightening liquidity as it tries to cool down a bubbling real estate market in urban China.This could mean tougher business conditions in the industrial metals and ores sector if the Chinese economy starts to slow down.
The rally is clearly getting rather long in the tooth, and may be running out of fuel!!!!
Monday, February 1, 2010
BUYERS OF U.S. GOVERNMENT DEBT - It's not all China!
Hat tip to David Rosenberg for the link to Floyd Norris' article in the NY Times
As the U.S. looks to take on more debt this year and roll over part of it's existing burden, it will be interesting to see how things turn out. Who's going to step up to the plate?
Thursday, November 26, 2009
Overcapacity in China
If there's one factor that destroys profitability, it's ''overcapacity''.
Take the Dubai property market for example - Skyscrapers and man-made islands:
way too many speculators, very few actual users, and all of it supported on a mountain of debt.
That's just asking for trouble.
Everyone has heard of China being the ''factory'' of the world, after all - everything seems to be ''Made in China''.
I've been scanning google links on the overcapacity in China's Industrial sector.
China Overcapacity Wreaks Global Harm, EU Group Says
http://le-iss.com/metals/?p=24319
Steel Guru : Strong demand leading to steel overcapacity in China
China's September data suggest that the long-term overcapacity ...
Take the Dubai property market for example - Skyscrapers and man-made islands:
way too many speculators, very few actual users, and all of it supported on a mountain of debt.
That's just asking for trouble.
Everyone has heard of China being the ''factory'' of the world, after all - everything seems to be ''Made in China''.
I've been scanning google links on the overcapacity in China's Industrial sector.
China Overcapacity Wreaks Global Harm, EU Group Says
http://le-iss.com/metals/?p=24319
Steel Guru : Strong demand leading to steel overcapacity in China
China's September data suggest that the long-term overcapacity ...
Reasons for concern: Wafer thin margins + surplus industrial capacity + massive debt levels
.
That's going to be one '''toxic''' cocktail at a time when consumers in the developed world are looking to ''save'' rather than ''consume''
.
Long term opportunities aside, it's time the whole world starts to save more, and pay down debt.
.
A sustainable long term recovery will be based on
- 'savings led investment'
- adequate risk capital for lenders
- fair and non manipulative accounting practices
- a sound banking system.
Stimulus packages, bailout packages and questionable accounting practices are not the way out of this mess!
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