« ALEA Home | Email msg. | Reply to msg. | Post new | Board info. Previous | Home | Next

Re: Possible corporate analogy?

By: DGpeddler in ALEA | Recommend this post (0)
Sun, 21 Jul 13 8:37 PM | 20 view(s)
Boardmark this board | The Trust Matrix
Msg. 14180 of 54959
(This msg. is a reply to 14161 by Cactus Flower)

Jump:
Jump to board:
Jump to msg. #

The Chinese consumers have very little money to spend. Chinese businesses sell their goods outside the country.




» You can also:
- - - - -
The above is a reply to the following message:
Possible corporate analogy?
By: Cactus Flower
in ALEA
Fri, 19 Jul 13 7:27 PM
Msg. 14161 of 54959

"One of them was that in a way, China’s low-consumption high-investment economy was a kind of Ponzi scheme. Chinese businesses were investing furiously, not to build capacity to serve consumers, who weren’t buying much, but to serve buyers of investment goods — in effect, investing to take advantage of future investment, adding even more capacity. Would there ever be final buyers for what all this capacity could produce? Unclear. So, a kind of Ponzi scheme."

Paul Krugman's blog

Not obviously building capacity for consumers, who seem to have little interest.

But investing to take advantage of future investment.

Now what does that remind me of?


« ALEA Home | Email msg. | Reply to msg. | Post new | Board info. Previous | Home | Next