China hard-landing fears hit high-end retailers

Market Watch ^ | 09/29/11

[TigerLikesRooster]

Sept. 29, 2011, 6:19 p.m. EDT

China hard-landing fears hit high-end retailers

The tumble came amid growing fears of a hard economic landing in China, which has emerged as a key driver of the world’s economy in the wake of the global financial crisis.

The concerns circle around the possibility that China could face a sharp slowdown in exports in coming months, aggravating the headwinds facing the Asian country and dampening the nation’s demand for premium brands such as Louis Vuitton and Tiffany.

“Fears of a hard landing in China have once again intensified. While our base case remains a soft landing led mainly by an investment slowdown, we see increasing downside risk from the situation in Europe and at home,” Barclays Capital economists led by Yiping Huang wrote in a report earlier this week.

[TigerLikesRooster]

P!

[UnbelievingScumOnTheOtherSide]

I’ve been saying it for several years: China 2000s-2010s is the next Japan 1980s-1990s.

[TigerLikesRooster]

China 2000s-2010s is the next Japan 1980s-1990s.

and China's 2020's could be like Japan's 1930's & 1940's

[RayChuang88]

Here's what could affect China:

1. They still haven't completely resolved the issues of overpopulation and pollution.
2. There are major fears that China's Big Four banks are way over-leveraged.
3. China could face the prospect of trade wars with the USA and Europe because of China's labor cost advantage.
4. Because China's two biggest export markets--the USA and Europe--have long distances to ship goods to, that means China could be vulnerable to increasing transportation costs, especially in terms of jet fuel and diesel fuel.

[Cringing Negativism Network]

This is all a bunch of fluff.

Hard landing or not, China now has America’s manufacturing base, technology and money.

That will not change, until we change it.

[EBH]

Wasn’t there an article last week about 7 large manufacture owners in China just closing up and disappearing? Government finding out the companies were millions in debt?

[UnbelievingScumOnTheOtherSide]

Everybody’s 2020s could be like the 1930s or the 1890s or the 1340s.

We’re out of cheap gas for a boom economy forever.
It’s over and ain’t nothing anyone can do about it.
(barring breakthoughs in fusion)

[UnbelievingScumOnTheOtherSide]

China now has America’s manufacturing base, technology and money.

In 10 or 15 years, those will be a rust pile, obsolete and worthless, respectively. We sold them the noose to hang themselves.

We won't have much either but we won't be alone.

[TigerLikesRooster]

Right. In Wenzhou.

The coming hard time means that many mistresses will be also laid off, now that high rollers are gone.

[count-your-change]

You just know a country is in trouble when the demand for Louis Vuitton and Tiffany goes down.

I'm surprised that any goats are left alive seeing that everyone is busy reading their entrails for clues and signs.

[Cringing Negativism Network]

I see plenty of stuff being made from those factories.

In WALMART.

[blam]

"Wasn’t there an article last week about 7 large manufacture owners in China just closing up and disappearing? Government finding out the companies were millions in debt?"

Here:

More Signs China Is Going Bust

[Cringing Negativism Network]

BUY AMERICAN

Thank you.

[Adder]

True.

But we don’t have the money to buy their goods.

All the capacity in the world doesn’t mean squat if you can’t sell stuff.

And we are tapped out right now. So is Europe. And China is lending money to both of us to keep us going in hopes of reviving us to buy their goods.

Won’t work. The only way out of this is to start making things here again. I do not know if that is possible. But you have to create wealth, not just swap finite dollars around.

[Cringing Negativism Network]

Simple solution:

Across-the-board import tariffs.

They worked just fine when America was becoming rich and great.

Odd thing is, now we no longer have import tariffs, we’re losing our jobs and factories.

“Free trade” has FAILED.

[WVKayaker]

I see plenty of stuff being made from those factories.

In WALMART. -CNN (apt initials evidently!)

... and Sears, Belks, Dillards, and most of every other American store.

I see plenty of stuff being made in America.

In WALMART.

You misrepresent the company, FRiend. WalMart still sells more AMERICAN made products than any other retailer in the states! They also source from many other international countries.

I have no financial interest in WallyWorld, other than shopping there on a regular basis to keep money in my pocket. I left a mere $30 there yesterday, along with a busload of residents from the (US) Armed Forces Retirement Home in Gulfport (MS). We go there often. Nothing in my cart was made in China!

ALAYS LOW PRICES means they shop the lowest source. The others play follow-the-leader (WalMart).

[Wolfie]

Jeez, they can’t afford Tiffany and Vuitton? I guess the Chinese will have to settle for the cheap crappy knock-offs they export to the rest of the world.

[Adder]

Thats an idea...and one of the few expressed taxes Congress is constitutionally authorized to lay....

[TigerLikesRooster]

they can’t afford Tiffany and Vuitton

Mistresses for high rollers are being laid off. Many high rollers are going bankrupt and on the run from creditors(and law,) leaving behind their mistresses.