Wednesday, September 2, 2009

Bank Balance Sheets Post Biggest Threat To Recovery

China is too small to be the main engine of global growth

" The debt ratios of banks and (individuals) are very high; (Individuals) have barely started saving. So what we’ve done is socialize these private losses and now we have a massive releveraging of the public sector with large and unsustainable budget deficits." Roubini told CNBC Fast Money...
"I don’t believe China can be the main locomotive of global growth – China GDP is only $3 trillion the US is $15 trillion. Chinese total consumption is $1 trillion the US is $10 trillion.
So China is too small to be the main locomotive of engine of global growth, and there are excesses right now in China like froth in the real estate and the stock market. And there is now the beginning of a correction. And if there was a sharp slowdown in China, that’s going to be again negative for the global economy." Roubini said in the same interview about China

1 comment:

Jerry Baldy said...

I have created a partial solution to the real problem the world economy has. Balance sheets are too weak and have been for decades. Dot Com booms and Real Estate bubles are not the answer. The solution is designed to be attached to larger thought,however, I think you will find it to be a very interesting and effective begining.It is time we design solutions and stop defining the problem. See

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