Looking for serious answers here, not trying to make a point. Would like to hear thoughts from krispy kremlin, Flagpole, and anyone who wants. This is NOT intended to be some liberal vs. conservative flame war.
Looking for serious answers here, not trying to make a point. Would like to hear thoughts from krispy kremlin, Flagpole, and anyone who wants. This is NOT intended to be some liberal vs. conservative flame war.
The Nike part of the economy?
iPhones
TVs
Happy Meal Toys. US is DEVASTATED.
Could put a ton of cash into our economy, as investors would pull investment out of the Chinese market and look to put it elsewhere. This would impact all sectors.
First of all, it will be a depression but very much unlike our own.
Our country's real estate market is currently overvalued, few will disagree with that (millenials: when your elected officials said they wanted to "revive the housing market" what that really meant was increase your rent or the cost of your first home but whatever tho), but at least it is in some way "valued". The Chinese real estate market is so saturated with over-building that any meaningful valuation is impossible. Eventually this must correct.
Unfortunately generations of families money will vanish. You'll see unrest in busy port cities and a slow down (or ceasing) of many exports. Any american company reliant on cheap imports will see shortages (a lot of companies...).
Commodities by the way would have already hit rock bottom as worldwide demand for any commodity hits generational lows (bankrupting several large miners and natural resource producers).
The PRC will allow one of their few huge banks to fail to show steps towards market discipline while also punishing that bank for some political infraction we'll never know about. While primarily symbolic, it will once again send a ripple through the banking sector. Banks with exposure to BOC, HSBC, ICBC, etc. will take losses. This will be the Chinese Bear Stearns moment. Except they'll handle it wrong given their less developed financial system. Global credit freeze just without the guard rails.
Most damaging will be the social unrest. Unlike every.other.country in the world, China began regulating child bearing in 1980 - the result has been a massive gender imbalance in favor of males. Eventually this must correct. Millions of angry, single males who's family's small wealth has been reduced to a broken apartment in a city no one lives in -> look out SCS.
The only "buys"(places to hide your money) will be treasuries, built-in-America non-cyclicals, and, of course, defense.
Thanks, krispy!
Twofold increase in the price of poo poo platers?
Summer state fairs would have no useless dolls and plastic guns to peddle when you try and smash 6 plates with a soft ball or shoot a 30 foot jump shot.....
Hog wash.