/biz/ - Business & Finance

>>12438124
>>12438307
sometimes governments fail, anon..

Speaking of which, an excellent article from market watch this morning.
https://www.marketwatch.com/story/watch-these-3-areas-to-tell-when-chinas-hard-landing-is-near-2019-01-13

some highlights:
>Apple is too big not be affected by the ongoing global economic slowdown. When a company creates a premium product — the most expensive and arguably the best phones on the market — it will see slowing demand every time the global economy slows. Ask any luxury brand what happens to their sales in a recession, and you will hear that high-end brands tend to suffer the most.
>Moreover, China is a major area of expansion for Apple. The weakening of the Chinese economy was happening before the trade friction intensified, and if one reads Apple’s news release carefully and sees all the Tim Cook interviews, it’s not hard to conclude that the trade war is a catalyst but not a cause of Apple’s sales miss. If China’s economy does decelerate quite bit more notably, it would be definitely hit Apple’s shares harder.
>The Chinese have created a credit bubble similar to the credit bubble a lot of Asian countries experienced in the 1990s that culminated in the Asian Crisis in 1997-1998. As the Chinese economy has grown from a little over $1 trillion in the year 2000 to likely close to $13 trillion in 2018, the total credit in the Chinese financial system is up over 40-fold, if one counts the infamous unregulated shadow banking leverage. That has taken the total debt-to-GDP ratio from 100% to over 400% in just 18 years. This is a very similar dynamic to what most Asian countries experienced before the Asian Crisis.