stockstradr: Wow. All of Asia encapsulated in two pithy, trenchant sentences!
So, all of the Asian markets will crash and burn? Are we talking a redux of the ’97 debacle, or did you have something more serious in mind? You’ll need to be a just a bit more specific to have any sort of credibility with that kind of prognostication.
Nost: It will be interesting to see how a country known for its statist tendencies will react to the sub-prime crisis hitting China. I agree with your call as to what they should do, but do you really believe they will do it? We have seen years of them stockpiling dollar denominated assets as nothing other than a means of hedging the yuan. Their attempts to cool the Chinese economy have been ham handed (which is not to say that our monetary and economic policy is any better) and not terribly effective. I don’t get the sense that there is a clearly defined strategy at work here. Of course, I don’t get that sense here in the US, either.
