CIO Vantage Point;
Economic Outlook
August 15, 2012 Posted by:
Joe Morgan, CFA
The views expressed in this column are solely those of the author and do not reflect the views of SVB Financial Group, or Silicon Valley Bank, or any of its affiliates.
Something strange and significant is happening in China: Money is walking.
The economy that has been the growth darling of the current century is facing many challenges, but this latest may prove a tipping point. Income, after all, can make up for a lot of faults, but when the waves of cash recede, faults are exposed.
This week's Wall Street Journal article lays out the facts pretty well including the graph below.
.bmp "Leaking out 812")
Bottom line: An economy whose housing, manufacturing, and consumption base stutter-steps could be pushed over the edge if capital flees.
Is this happening in China?
The views expressed in this column are solely those of the author and do not reflect the views of SVB Financial Group, or SVB Asset Management, or any of its affiliates. This material, including without limitation the statistical information herein, is provided for informational purposes only. The material is based in part upon information from third-party sources that we believe to be reliable, but which has not been independently verified by us and, as such, we do not represent that the information is accurate or complete. The information should not be viewed as tax, investment, legal or other advice nor is it to be relied on in making an investment or other decisions. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to the material should be construed as a solicitation or offer, or recommendation, to acquire or dispose of any investment or to engage in any other transaction.
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What Happens in China...Leaves China?August 15, 2012 Posted by: Joe Morgan, CFAThe views expressed in this column are solely those of the author and do not reflect the views of SVB Financial Group, or Silicon Valley Bank, or any of its affiliates.
Something strange and significant is happening in China: Money is walking.
The economy that has been the growth darling of the current century is facing many challenges, but this latest may prove a tipping point. Income, after all, can make up for a lot of faults, but when the waves of cash recede, faults are exposed.
This week's Wall Street Journal article lays out the facts pretty well including the graph below.
Bottom line: An economy whose housing, manufacturing, and consumption base stutter-steps could be pushed over the edge if capital flees.
Is this happening in China?
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