Wednesday, November 26, 2008

Panic of '08 Spreads to China


Story found on the Drudge Report:


The People's Bank of China cut interest rates by more than 1pc point as the economy crumbles and millions of jobs are predicted to go ahead of Christmas....

It is the fourth interest rate cut from the Chinese central bank in the last ten weeks as the government desperately battles an evident economic collapse. "China is out to save itself here," said Patrick Bennett, an analyst with Societe Generale in Hong Kong....

In recent weeks, a series of riots across central and southern China have flowered as disgruntled employees aired their grievances at the downturn.

Today, around 500 protesters rioted at the Kai Da toy factory in Dongguan in the Pearl River delta, flipping over a police car and trashing computers in a dispute over payoffs to 80 fired workers. Tens of thousands of factories across the region have already shut their gates.

Things may be tough in the U.S., but the absence of social services and other infrastructure elements would make unemployment in China absolutely awful.

I hope this panic and depression phase we're in does not continue for long. However, I remember a fellow who's a whiz at the economy (should it drag on). Let's keep Mitt close to the action.

1 comment:

Which_Larynx_Said_What? said...

I always new this was going to happen in China. I just didn't think it would happen this soon.

Their version of socialism with a twist of free market economics has resulted in a wide economic disparity within their citizenry.

It is one thing to have economic disparity when one can work their way up but if there is supposed to be "equality", "mandated job security", etc, it is only a matter of time before this happens.

Nice post Neilie Ride.