Via the FEER’s Travellers Tales blog‘:
Jim Walker, chief economist at CLSA, has done the unthinkable, at least for a banker. He has predicted,
gasp, that in a couple years China will be growing at a mere 3% to 5%.
For most countries, the bottom of the economic cycle usually means
negative growth, but then in China anything below 7% has long been
considered a disaster, since those workers being laid off from
state-owned companies would have no chance of finding new jobs. … Still, we
wonder if such a "collapse" can be as benign as this. If there is a
balance-sheet crisis and all the excesses of the last half decade have
to be worked out, wouldn’t it look more like Korea in 1998?
[link]
