Comments on: The rout in global stocks is a tempest in the teapot of China’s command economy http://jubakpicks.com/2010/01/28/the-rout-in-global-stocks-is-a-tempest-in-the-teapot-of-chinas-command-economy/ Sun, 12 Feb 2012 18:19:20 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: DJBarber http://jubakpicks.com/2010/01/28/the-rout-in-global-stocks-is-a-tempest-in-the-teapot-of-chinas-command-economy/comment-page-1/#comment-3626 DJBarber Sat, 30 Jan 2010 18:36:14 +0000 http://jubakpicks.com/?p=2938#comment-3626 Zhu Says China to Keep Yuan Policy, Fight Inflation (Update1) "Zhu said overcapacity also poses challenges for the government, which is continuing efforts to rebalance the economy toward domestic consumption and away from export-led growth. Overcapacity in steel, cement and shipbuilding should be reined in, he said. " From: http://www.bloomberg.com/apps/news?pid=20601087&sid=ayAGC8bnN8nU&pos=3 Zhu Says China to Keep Yuan Policy, Fight Inflation (Update1)
“Zhu said overcapacity also poses challenges for the government, which is continuing efforts to rebalance the economy toward domestic consumption and away from export-led growth. Overcapacity in steel, cement and shipbuilding should be reined in, he said. ”

From:

http://www.bloomberg.com/apps/news?pid=20601087&sid=ayAGC8bnN8nU&pos=3

]]> By: Mises00 http://jubakpicks.com/2010/01/28/the-rout-in-global-stocks-is-a-tempest-in-the-teapot-of-chinas-command-economy/comment-page-1/#comment-3605 Mises00 Fri, 29 Jan 2010 19:55:51 +0000 http://jubakpicks.com/?p=2938#comment-3605 China began from such a low level of development with such a horrible system, that any efforts to free up their markets should and did yield rapid growth. China is a combination fascistic style command economy at the top with a mix of laissez faire capitalism in parts of the economy. This system has yielded excellent results for some time, but seems to be mounting malinvestments occurring that will take a significant correction to deleverage unless the Chinese government is able to prevent them from getting out of control in the first place. The problems of overcapacity and reliance on export markets that are weak are problems that will not be easily resolved. The amount of resource reallocation that will be necessary is significant. Mises China began from such a low level of development with such a horrible system, that any efforts to free up their markets should and did yield rapid growth. China is a combination fascistic style command economy at the top with a mix of laissez faire capitalism in parts of the economy. This system has yielded excellent results for some time, but seems to be mounting malinvestments occurring that will take a significant correction to deleverage unless the Chinese government is able to prevent them from getting out of control in the first place.
The problems of overcapacity and reliance on export markets that are weak are problems that will not be easily resolved. The amount of resource reallocation that will be necessary is significant.
Mises

]]> By: amateur http://jubakpicks.com/2010/01/28/the-rout-in-global-stocks-is-a-tempest-in-the-teapot-of-chinas-command-economy/comment-page-1/#comment-3595 amateur Fri, 29 Jan 2010 17:28:29 +0000 http://jubakpicks.com/?p=2938#comment-3595 Hi Jim, I've been following you for quite some time too. Wow! What an insight! Thank you very much for helping us understand the why and the way the market works. You have a gift. Diwakar Hi Jim,
I’ve been following you for quite some time too.

Wow! What an insight!

Thank you very much for helping us understand the why and the way the market works. You have a gift.
Diwakar

]]> By: davcbr http://jubakpicks.com/2010/01/28/the-rout-in-global-stocks-is-a-tempest-in-the-teapot-of-chinas-command-economy/comment-page-1/#comment-3587 davcbr Fri, 29 Jan 2010 16:03:01 +0000 http://jubakpicks.com/?p=2938#comment-3587 I work in a big company. For what it's worth, this view of China makes me think they run the country like we run a corporation. Just try to get that new piece of equipment in November or January. Spend ALL of your budget, because that is an indicator of your dept's needs. If you spend less, you'll get less. Sounds like they have over a billion employees. I work in a big company.
For what it’s worth, this view of China makes me think they run the country like we run a corporation. Just try to get that new piece of equipment in November or January. Spend ALL of your budget, because that is an indicator of your dept’s needs. If you spend less, you’ll get less.
Sounds like they have over a billion employees.

]]> By: tostoryteller http://jubakpicks.com/2010/01/28/the-rout-in-global-stocks-is-a-tempest-in-the-teapot-of-chinas-command-economy/comment-page-1/#comment-3579 tostoryteller Fri, 29 Jan 2010 02:39:09 +0000 http://jubakpicks.com/?p=2938#comment-3579 Jim, Good post. You're certainly right about the 8% threshold that the government will hit come hell or high water. As you pointed out, the order-it-done-and-it-gets-done economics that China practices can result in something that I found totally perplexing while trying to do business there. In a nutshell, there are no economic laws that we typically think of as checks and balances in the west - you know, the supply demand kind of logic that most rely on. Switching to an idea. What about LNVGY, Lenovo? Have you looked at it? My logic is quite simple. FACE. Lenovo came about as the result of the merger of Legend Holdings in China and IBM’s Personal Computing Division in the United States. I think the merger is a watershed event in global business with the potential for integrating two disparate cultures, languages, processes and markets. As a result, Lenovo embodies the unique market possibilities in combining the best of East and West -- joining North American and China-based technology in developed and emerging markets alike. My view China won't let it fail. FACE. Jim,
Good post. You’re certainly right about the 8% threshold that the government will hit come hell or high water. As you pointed out, the order-it-done-and-it-gets-done economics that China practices can result in something that I found totally perplexing while trying to do business there. In a nutshell, there are no economic laws that we typically think of as checks and balances in the west – you know, the supply demand kind of logic that most rely on.
Switching to an idea. What about LNVGY, Lenovo? Have you looked at it? My logic is quite simple. FACE. Lenovo came about as the result of the merger of Legend Holdings in China and IBM’s Personal Computing Division in the United States. I think the merger is a watershed event in global business with the potential for integrating two disparate cultures, languages, processes and markets. As a result, Lenovo embodies the unique market possibilities in combining the best of East and West — joining North American and China-based technology in developed and emerging markets alike. My view China won’t let it fail. FACE.

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