China and Drinking from the Garden Hose

China and Drinking from the Garden Hose. 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 that we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst and trader Chris Markowski.

Speaker 2 (00:16):
China and drinking from the garden hose. I keep looking
at what they're doing over there right now and trying
to prop up their economy, save it. Almost in essence,
try the'se in Zsion Pain trying to save his job.
It reminded me we're kids who're playing in the backyard

(00:37):
in the summertime, and you know, we got hot and we
wanted to have something to drink. And you know, you
drink from a normal garden hose and you just turn
it on and you know, night the water comes out
nice and you're drinking it and you're having a great
old time in the backyard. You know. Again, yeah, generation
Generation X sort of stuff, I guess, But I remember

(01:00):
we were kids as well. We would like kind of
challenge ourselves. You know, you have the garden spray run
and you tried drinking from that, and you know the
side of your mouth is going like this. But again,
I just thought about that when I'm thinking about China
and what they're doing right now, because that's what they're doing.
They're trying to force all sorts of capital, all sorts

(01:23):
of money down the throats of their citizens. The stimulus
call it onslaught, Yeah, because that's basically what it is.
They basically declared and decreed that they're going to be
even lowering their interest rates even further. We're talking fifty
BIPs basis points below prime. We're getting close to two

(01:49):
point five percent on mortgages over in China. My thing
is is you're going to get people to bite. I
got a sinking suspicion that, you know, people aren't that stupid.
They've seen the valuations in real estate that they've seen
them fall off a cliff again. You want to get

(02:13):
people into homes, you want to prop up a real
estate market which was overbuilt. I've explained this before here
on the program. It's interesting the way that the Chinese
in essence raised money for their various different municipalities around
the country is in essence, they just sell off land.

(02:34):
They sell off land to people to buy, you know,
to build more homes. And they've built more homes than
they actually need I remember watching. It was a week
or two ago. I mean major high rises, five or
six of them, lined up, brand new buildings. Boom boom,
boom boom, knock them down. Developer couldn't finish them. People

(02:56):
see this, Okay, this is China, and yeah they have
restrictions on what gets out, but it's not North Korea.
I don't know what will be garden hose treatment work.
I'm I'm not so sure. Watchdog on Wall Street dot
com