Cramer's Stop Trading! China Saves the World (4/29/09)

Stocks discussed on Jim Cramer's Stop Trading! TV Program, Wednesday April 29.

General Electric (GE), Corning (GLW), Whirlpool (WHR), Best Buy (BBY)

Cramer saluted China for its aggressive stimulus plan and declared; "China is pulling everyone out." The government initially gave rural citizens coupons to buy washers and dryers and the plan is expanding to include city dwellers and coupons for other appliances. "These aren't replacement items," observed Cramer, remarking the China is literally creating consumers who will want to buy more electronic goods, and the sale of appliances in rural areas has the potential to reach 100% penetration. This is good news for General Electric, Corning, Whirlpool and Best Buy.

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Comments

[Mutual Fund...:]

Is Cramer getting the scoop from my web page and news article posts? For some time now I have posted the fact that China would lead the international and global market place out of the economic turmoil of last year.

Doug T.....The mutual fund guy
www.mutualfundwealth.com/

Apr 30 10:19 AM

[bobbobwhite:]

The good thing about China helping its citizens to buy manufactured items is that every year they will spur the economy as they will have to buy new ones to replace the worn out year-old junk due to the poor quality of anything made in China! Similar to Detroit's attitude toward USA auto consumers in the 50's...."3 years and a new one" for cars sold then. That's all the time Detroit intended for those cars to last.

I have never seen even one really good manufactured product from China.......all due to poor engineering, materials, build quality, greed over pride, etc. And, they use the same CAD and CAM we do here so there is no excuse for it! Everything made there is obviously done only for money and not pride, just like Detroit, and it will end up like Detroit if it doesn't change its attitude, and soon, as China's crummy product reputation is already solid here and will take much time to overcome, if ever.

Apr 30 11:35 AM

[backtoreality:]

mr quail..

china helping it's citizens to buy?...have you ever been there?

most of them don't even own a refrig...the only appliance they sell in dept stores is a crockpot or fry pan...the PRC considers refrigeration to be a waste of electricity...not heat in buildings south of the yangtze.

i bought a digital camera, made in china, at walmart in usa for 40 bucks...the same camera in a china store is 200 and up...the 40 dollar camera works...a similar camera with the kodak name is about 130...i tried one, and it didn't work.

90 per cent or better of the chinese population can't afford a camera....much less a car...where do you get your info?...from catatonic cramer?


On Apr 30 11:35 AM bobbobwhite wrote:

> The good thing about China helping its citizens to buy manufactured
> items is that every year they will spur the economy as they will
> have to buy new ones to replace the worn out year-old junk due to
> the poor quality of anything made in China! Similar to Detroit's
> attitude toward USA auto consumers in the 50's...."3 years and a
> new one" for cars sold then. That's all the time Detroit intended
> for those cars to last.
>
> I have never seen even one really good manufactured product from
> China.......all due to poor engineering, materials, build quality,
> greed over pride, etc. And, they use the same CAD and CAM we do here
> so there is no excuse for it! Everything made there is obviously
> done only for money and not pride, just like Detroit, and it will
> end up like Detroit if it doesn't change its attitude, and soon,
> as China's crummy product reputation is already solid here and will
> take much time to overcome, if ever.

Apr 30 06:22 PM

[BadCompany:]

Wow, talk about grasping at straws. You have to be insane to think that the Chinese are gonna replace American consumer demand.

The Chinese value prudence and thrift as part of their culture. They simply are not going to consume like Americans. Compare the sense of entitlement of the median American woman to that of her Chinese counterpart.

In addition, China lacks the social safety net we have, here. So, they can't use Social Security as a rationalization for not saving.

Apr 30 08:26 PM

[Pessimistic...:]

I have to think that in some places rural China doesn't have a pot to piss in literally.. why on God's green earth would they
give a wash machine to each family in China's rural communities when water and plumbing in some of these locations will be scarce at best?

beyond that as mentioned electricity is a luzury most of these farm communities most likely don't have either. They going to also supply generators and then water tenders so they can do their laundry? Might as well throw in some detergent.. uh, biodegradable.

May 02 08:47 PM

[gochina:]

I think backtoreality better get off their high horse and get a bit of reality themselves. I have lived and worked in China for over 10 years in retail management for an international company after many years doing the same in North America ( I am not Chinese but married to someone who is btw) and 'reality's' comments only reflect how ignorant they are.

Every single day, I meet Chinese who have more money than they know what to do with and believe me, this country is well on it's way to surpassing the USA for it's standard of living.

Are there poor people here? For sure but maybe the next time you drive around your hometown, you might open your eyes to the amount of beggars standing on street corners asking for money or pushing shopping baskets. In a country that is supposedly the richest in the world ( which it is not ) I am embarrassed and saddened every time I see this

You want to talk about quality? Here owning a GM product is considered an entry level vehicle while most 'poor Chinese' buy BMWs, Toyotas and other finer cars. Here 'made in America' means sub par, old technology and expensive.

As for the comment on refrigerators, another ignorant statement, I have thousands of Chinese friends and all of them have one. The only difference is that they are smaller because Chinese people do not eat frozen junk food and shop for fresh items daily.

BTW, did you say you shop at Walmart? hmmm. say no more



On Apr 30 06:22 PM backtoreality wrote:

> mr quail..
>
> china helping it's citizens to buy?...have you ever been there?<br/>
>
> most of them don't even own a refrig...the only appliance they sell
> in dept stores is a crockpot or fry pan...the PRC considers refrigeration
> to be a waste of electricity...not heat in buildings south of the
> yangtze.
>
> i bought a digital camera, made in china, at walmart in usa for 40
> bucks...the same camera in a china store is 200 and up...the 40 dollar
> camera works...a similar camera with the kodak name is about 130...i
> tried one, and it didn't work.
>
> 90 per cent or better of the chinese population can't afford a camera....much
> less a car...where do you get your info?...from catatonic cramer?
>

May 04 06:44 PM

[Alexander Li:]

Here I am Chinese. Actually, I can not consume much money at all. As mentioned in this addition, I have no social healthcare insurance. Many of my friends have to pay one fourth of their income for their child education and living. The house and apartment prices in guangzhou are equal to that in suburb of frankfort, Germany. In 2008, my classmates, physicians, lost their money in security investment.


On Apr 30 08:26 PM BadCompany wrote:

> Wow, talk about grasping at straws. You have to be insane to think
> that the Chinese are gonna replace American consumer demand.
>
> The Chinese value prudence and thrift as part of their culture. They
> simply are not going to consume like Americans. Compare the sense
> of entitlement of the median American woman to that of her Chinese
> counterpart.
>
> In addition, China lacks the social safety net we have, here. So,
> they can't use Social Security as a rationalization for not saving.
>
>

May 04 11:34 PM