M.R. Henderson

Momentum for Infrastructure Is Building in Both U.S. and China

In reference to China's stimulus, we cannot repeat this huge ghost number without repeating that Beijing has now said it will only pay 1/4 of this amount, relying on municipalities, banks, and companies to pay the rest. Municipalities for one will NOT be footing this bill. And Chinese companies, far from being helped, will likely be forced to milk themselves to pay for these "projects". Finally, much of this stimulus has already been spent. Once and only once these characteristics of China's stimulus have been addressed, can we begin to discuss China's stimulus effect.