In USA: Economic crisis grew from too-free lending: The Commerce Department reported that Americans are spending less now as the result of decreasing value of houses plus high energy prices such as Gas price in Hawaii $4.40 a gallon as per the radio broadcast. Stocks are down today as well. Folks in USA feel having less wealth but paying high cost of living. President Bush is aware of such tough time in the economy but he still believes that the economy will be OK after his stimulus plan (growth package)by this fall after Americans get rebate checks from Treasury. Such medicine may be difficult to swallow for most folks. Rhetoric? Political necessity of oficial optimism? We shall find out the facts in the second half of 2008.
Page D3: David Rosenberg, chief economist at Merrill Lyunch: "We had a dramatic overextention of credit and consumption growth for a long time. In a survey by Wall Stree Journal, 71% of economists said they thought the economy was in recession. I endorsed such view in my past blogs. REASON: The lifestyle of borrowing on credit has caused the current happenings of stagflation.
In China: On page A13: President Hu has a plan to streamline government and would create new superministries to reduce overlapping bureaucracies. Hoping for the best for management of the economy.
On page C12: China reportedly has spent $17 billion to ease smong in and around Beijing. Starting in July, vehicle traffic in the city will be reduced by almost half. Satisfied that conditions are imroving, Britich athletes will not wear special masks when competing in Olympic Games in China.
My observation: Fluctuations in the private sector would require the clout of the public sector to take action. However,a market economy is supposed to be free and the outcome has been in evidence as we are witnessing today. Any scenarios would depend on future empirical evidence in economics.
Francis Shieh,an independent observer and a devoted student with pair of glasses having two lenses looking at Sino-American economics. March 14, 2008 at 9.30 p.m.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment