Friday, January 29, 2010
A Rotten Comparison - Redux
Yesterday, I criticized Obama for comparing America to China in his SOTU speech. I titled my post A Rotten Comparison.
Today, I point you to post by Vitaliy Katsenelson, at his investment site Contrarian Edge. Katsenelson’s post is titled Chinese Quest for Shortcut to Greatness. The post outlines why America should not follow the path China has gone down, and I think the post firmly bolsters why Obama’s comparing what China does, as a model for America to follow, is a rotten comparison. The opening paragraph from Katsenelson’s post.
The Chinese economy must be getting out of control, because the Chinese government is doing the unthinkable: It is desperately trying to put the brakes on the economy. When you pump a stimulus package that represents 14% of GDP through a fire hose into an economy, which was already on shaky bubble foundation, in a very short time you’ll have some serious unintended consequences — you’ll get super bubbles.