RANsquawk Chinese Data Review - 10th September 2012

Comments

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Interesting comments by Marc Faber here:

http://marcfaberblog.blogspot.com.au/2012/09/video-train-yourself-not-to...

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I also think not enough people picked up on the $154 billion USD in new stimulus spending on infrastructure ... the Chinese leadership called it, "a stern program to keep young people in China employed."

i.e. they can see the economy is getting much weaker, and are trying to shallow out and flatten the trajectory.

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China Announces Major Stimulus Program; Market Stalls on Job Numbers
 
By Thomas J Smith CFA09/07/2012   
 
The S&P 500 closed the week at its highs. Stocks advanced Friday after the huge spike higher yesterday. The Dow and the NASDAQ did not fare as well today as they just barely closed in the black. The event from today that could be the most beneficial to the markets over the coming months was the $154 billion stimulus package announced in China.
 
The fear of things coming unglued in Europe and the threat of a hard landing in China has been the two largest fears in the market. The European Central Bank gave their solution to things on the Continent yesterday and the central planners in China announced they were going to open their checkbook and spend an awful lot of money in order to keep the growth machine in China going forward. That announcement was not getting enough attention today in my opinion.

http://www.financialsense.com/contributors/thomas-j-smith/china-stimulus...