This is a really well-written article, and I agree with most of it. But I do see a disconnect in your progression to the Chinese labor market as a link in this problem chain. The labor market is flooded with migrant workers looking for factory jobs - hundreds of millions of Chinese are eager to move from their farms to the factories for even a sliver of a chance at a better life.
Adding to the labor supply glut is the Chinese workers' lack of leverage over their managers. If they managed to coordinate a city-wide, region-wide, or even country-wide strike, then there may be some changes. But I'm not convinced that these laborers are confident enough in their job security that they would dare to do such a thing.
The PBOC cuts bank reserve ratio requirements by 50 basis points to 20.5%, effective February 24, reports the WSJ. It's the second easing of policy in less than 90 days. [View news story]
Just being devil's advocate here, but things always look best before the crash.
The Upcoming Crash Of Apple And Amazon [View article]
Amazon's potential is priced into the stock. It is diving into several new markets that several years ago seemed impenetrable for a company of its nature. With the release of the Kindle Fire and streaming video, AMZN is showing that it is more than just an online retailer. Its p/e is absurdly high, but I have not seen any evidence to prove that it is unwarranted.
The Upcoming Crash Of Apple And Amazon [View article]
Amazon's advantage isn't just in its successful evasion of sales tax. It boasts an online infrastructure that makes users feel secure, which is more than many of its competitors can say. Similarly, Apple's appeal is not in the price point. Its appeal is in that its devices are easily synced, and because it has managed to market its devices as necessary fashion accessories. Both companies have a niche that matters more than the prices they offer their products at.
Solar company Solyndra files for bankruptcy just months after receiving a federal loan guarantee to expand its plant. About 1.1K employees will be immediately laid off. The company said it was unable to complete with larger (also subsidized) overseas manufacturers, and a global glut of panels leading to a 25% drop in prices. [View news story]
You make it sound as if the U.S. isn't subsidizing industry.
Quote: "Solyndra files for bankruptcy just months after receiving a federal loan guarantee to expand its plant"
Our labor laws and regulation simply create a too-high cost of doing business compared to Chinese firms. Of course, their workers are also suffocating from the by-products that come from production and live in tenements.
Who Says China Inflation Is Under Control? [View article]
Practically all "official" Chinese statistics are doctored to keep foreign investors investing. I wouldn't trust the paper they're printed on. Look at independent think-tank statistics.
Never put much faith into future projections. The past can be used to mark possible ceilings, but when looking at the future take into account the company's current offerings.
China's Giant Catch-22 [View article]
Adding to the labor supply glut is the Chinese workers' lack of leverage over their managers. If they managed to coordinate a city-wide, region-wide, or even country-wide strike, then there may be some changes. But I'm not convinced that these laborers are confident enough in their job security that they would dare to do such a thing.
The PBOC cuts bank reserve ratio requirements by 50 basis points to 20.5%, effective February 24, reports the WSJ. It's the second easing of policy in less than 90 days. [View news story]
The Upcoming Crash Of Apple And Amazon [View article]
By the way, I have no position in amazon.
The Upcoming Crash Of Apple And Amazon [View article]
There Will Be No European Liquidity Crisis (Part 1) [View article]
Solar company Solyndra files for bankruptcy just months after receiving a federal loan guarantee to expand its plant. About 1.1K employees will be immediately laid off. The company said it was unable to complete with larger (also subsidized) overseas manufacturers, and a global glut of panels leading to a 25% drop in prices. [View news story]
Quote: "Solyndra files for bankruptcy just months after receiving a federal loan guarantee to expand its plant"
Our labor laws and regulation simply create a too-high cost of doing business compared to Chinese firms. Of course, their workers are also suffocating from the by-products that come from production and live in tenements.
Who Says China Inflation Is Under Control? [View article]
Is RIM Currently Undervalued? [View article]