We could be going for the long haul.
The current US financial crisis could simply mean the end of the US economic dominance in the world.
The Japanese meltdown lasted nearly two decades and still counting.
For turn around, the world awaits China - and India and Russia.
Export-oriented China firms may fail in the next 2-3 years. New domestically-oriented firms need to rise. They may wait to suss out the situation to build new factories and seek bargains of old factories. This may take 2-3 years. For the result to show, if any, we may have to wait 3-5 years.
In the meantime, China has to rethink its economic policy.
We could be in for the long haul.
1 comment:
Very astute and succinct observations, indeed. We all need to reduce borrowings and live within our means. Any views on credit card over-spending? Times like these you worry about the younger crowd and the easy credit perpetrated by credit card companies.
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