Quote:
Originally Posted by Slava
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Lets face it...when the GDP drop is 0.6% we are not looking at armageddon here. Yes, there is a lot of pain particularly in the US where a 25 trillion dollar market (housing) has just trimmed $5 Trillion (20%). That type of drop is going to be painful. People are ditching their houses and keeping their cars...which is an anomaly compared to past events. But at the same time you have corporations with balance sheets that are very strong. You have demand in SE Asia that was simply not there in previous decades, and by all accounts that demand will strengthen over the coming year.
There is no question that this is a temporary situation on the markets.
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I guess this is the wildcard... It either gives you comfort or worry. Being so heavily dependent on exporting to Western markets, a slow down in consumer spending is going to have some sort of impact on these countries. In fact, didn't China itself recently annouce a $500billion stimulus package for Chinese companies?