Surviving the current credit tsunami
The economy is a scary thing these days. Alan Greenspan recently referred to America’s current financial crisis as a “once in a century credit tsunami,” and people in power have been pushing packages and programs to help ease the credit crunch.
Our government is swimming in a pile of debt, and we’re not the only ones in trouble. South Korea, Germany and the United Kingdom are just a sample of other countries that are bailing out their financial institutions in an effort to save their economies.
One country that is showing a strong economy, and even a future of economic growth, is China. They seem to be doing everything right in terms of their finances these days, and I for one think that other countries should take a tip or two from them.
To learn more about what’s going on in the economy and what China’s doing differently, please visit my website and read my article titled “Signs of Hope in Troubled Economies.”
Tags: economic recovery, Economic struggles, financial crisis, global economy
2 comments 
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February 16th, 2009 at 10:35 pm
Hey Ron,
For a lot of reasons I think China will weather the current crisis better than the U.S. Two factors I’d suggest considering are:
1. Beijing is expecting to spend a staggering 4 trillion RMB on infrastructure. Since the central committee has continued to talk about an 8% GDP growth as a basement figure I think they’re going to spend their way to 8%
2. The general lack of transparency makes it difficult to say for sure what is going on. Considering how much difficulty we are having here in the U.S. quantifying the problems in the economy it is possible that there is a large financial crisis that is kept out of view. Hard to know.
February 16th, 2009 at 11:17 pm
Thanks Ted,
I am a believer in the infrastructure improvements, the USA needs to be taking notes.
The lack of tranparency makes it very difficult, however I am not sure it would help if everyone showed their hand in this card game.
Either way you look at it China, India and the USA need to step up and get the world economy moving. Each will help the others when they start growing again at a faster pace. It is hard to know who will do better but it will always be a matter of opinion. As long as the banks can keep lending we will see growth. I believe the velocity of the money will play a big role in the recovery and how markets react.