Comments on: Don’t rush the Chinese to become big spenders

By: Mikov

Mikov — Tue, 28 Apr 2009 05:44:50 +0000

China’s high savings is because current social security level. People won’t spend much money if they do not feel ‘safe’ enough.

By: Don

Don — Mon, 27 Apr 2009 23:52:15 +0000

The Chinese do spend a lot of money, though. They just don’t spend it on the same sort of stuff. Americans for instance spend a lot of money on beer, cigarettes, drugs (both legal and illegal) and eating out at over-priced restaurants. The spending patterns are just plain different. There is no reason to believe that as time goes on the Chinese will gravitate towards something more like the U.S. The Chinese understand that Britney Spears and Hanna Montana have no talent. Don’t waste your money. Do you like baseball? Wow, what a waste of cash.

By: brent

brent — Fri, 24 Apr 2009 15:52:42 +0000

Of course,
China’s high savings rate was one of the reasons that long term interest rates were able to stay low for mortgage shoppers in the states in the early part of this decade. Furthermore, there is no viable way to confirm ANY metrics that the Chinese government puts out as they keep tight lids over monitoring statistics that would let outside economists keep an independant pulse on their economy.