socrateazz

Credit Market Overview: Lessons Learned from Germany and China

You are right about germany really giving a stimulus by scraping older cars. The US might concider such. Too many old cars around though so it would need to be one for one scrap for a trade in. would also get rid of some of that ornimental scrap throughout the US. And help car companies at the same time. The ineffient behemoths that US car giants have become will be given a few more years that way. But they either need to change fundamentally or they will die within the next ten years. I expect the latter because those within the companies believe the problem is the economy. The economy has just made the problems more visible and acute. China is interesting in that the government is concidered communist (really a socialist state) which encourages capitalism within. The US is currently a socialist electorate state which discourages Capitalism within. China currently has policies which really encourage capitalism within. The USA has policies which discourage Capitalism within. The Capitalistic system needs rewards to exceed costs to continue to thrive. In the US general costs (taxes) have exceeded the rewards within the system. Excessive borrowing has covered it up. Ironically, the US will continue in its course until the leaders wake up. This situation did not just happen! societies through out the world really believed that they indefinitely could extract more wealth from the producers. Unfortunantely most of the wealth extraction from the producers is finished and the world will see the reaction to the folley