China’s Economic Crisis: Will a Stimulus Plan Work?

China’s Economic Crisis: Will a Stimulus Plan Work? www.watchdogonwallstreet.com

Episode Transcript

Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski sheer panic.

Speaker 2 (00:18):
Basically, what's taking place in China right now? China is
pressing print print, print, print, print print. Yeah, the people
at the top, they are starting to get it. They're
starting to get that they are in deep, deep trouble.

(00:39):
You know, they're calling it a stimulates blitz nave. I'd
say it's more the line of panic at this point
in time. Reducing the seven day reverse repo rates, I
mean a myriad of things. Cutting the reserve requirement ratio
by point five percent, that's spring up another one hundred
and fifty billion dollars and liquidity lowering rates for existing mortgages,

(01:05):
cutting down payment ratio on second homes to fifteen percent
from twenty five percent. I can go on and on
and on the various different things that China is doing
right now because their economy is failing. Again. We told
you this was happening. Okay, this is like watching a

(01:26):
slow motion train wreck over time. This is what inevitably
happens when you have a command and control economy, when
you have wizards of smart at the top, thinking that they, hey, yeah,
I could control this. I got this whole, this whole
economy thing down here. I took an eaton one oh
one class. Now whatever you don't. You can't control mother nature,

(01:49):
you know, look at it this way. Okay, I'm I'm
now here. I'm in a hotel here in Florida, waiting
to close on my house in a few days. There's
a hurricane come and hurricane in the Gulf of Mexico.
Is it coming our way? Yeah? It is? Is it
going to hit us? I don't know. You take a
look at those models, those little spaghetti models that they

(02:12):
throw out there. The wizards are smart there. They don't
know either. Okay, they're just guessing. And you know what,
the weathermen are going to be more accurate than the
people that think they can centrally plan an economy. You've
got a billion plus people over in your country, and
you think you're going to figure out all of the
day to day interactions, transactions, interactions and manage that. Yeah,

(02:38):
good luck with that. What you need to do is
get the hell out of the way. Let chips fall
where they may. Companies fail, let them fail. Don't try
to prop things up. Don't try to help companies out.
I know we do it here too in the United States,
and it never works. It always makes matters worse. China
put themselves in this situation and they're trying to print

(02:59):
their way out. Watchdog on Wall street dot com