Seeking Alpha

Joseph L. Shaefer » Comments » BIDU

  • China Remains a Compelling Buy via PowerShares Golden Dragon ETF [View article]
    << “China has good long-term fundamentals, and the country is rich in resources and consumer growth. The population is booming…” >>

    I wish I were able to go along with this recommendation as I believe China’s long-term growth story is real, but in the intermediate term I was on the fence, balancing the above with their severe ethnic strife, horrible pollution, lack of fresh water, poor corporate governance, the need to create 24 million new jobs a year just to keep the lid on the economic pressure cooker, etc. Then I read further…

    << …an explosion in bank lending [has] helped to fuel the Chinese economy. Interest rates are nearly zero, and people are beginning to use funds to buy equities and real estate to keep their money from depreciating. The influx of “easy” money has also prompted a spike in retail. >>

    I could have easily have mistaken these words for a bullish analysis written in the summer of 2007 about the US economy. Easy credit, low rates, huge buying of real estate and stocks, and a spike in retail sales! That helped me decide. For now, I’ll stay out of China until I see if they are heading down the same idiotic path our nation chose less than 24 months ago.
    Jul 16 16:30 pm |Rating: +10 -2 |Link to Comment
More on BIDU by Joseph L. Shaefer
Comments by Ticker
AA, AAI, AAPL, AAUKY.PK, ABK, ABT, ABX, ACL, ACN, ACV, ADBE, ADCT, ADE, ADI, ADM, ADP, AEG, AEM, AET, AGG, AGO, AGU, AIG, AIR, AIV, AKP, ALD, ALL, ALU, AMLN, AMN, AMR, AMZN, ANGO, ANH, ANZBY.PK, AOB, AONE, AP, APC, APD, APOG, ARUN, ARVCF.PK, ATI, ATLIF.PK, ATW, AU, AUO, AUY,
Joseph L. Shaefer is a
Top 50 Commentor
317 comments
Rating: 1819 (2056 - 237 )