Found some interesting and disconcerting news on China this weekend.
The first article, here, talks about a potential “Hard Landing” for the Chinese economy and some of the reasons. It also has other links throughout the page discussing China and some of their current and future problems in their economy. Very interesting reads.
The second article is to me the more important one because I found something very disturbing in it. In general it talks about how China’s PMI keeps dropping and how it looks like the Chinese economy keeps slowing. PMI is a measure of the level of manufacturing and is further explained here.
About half way through the Fox Business article is the disturbing part though:
To shore up growth, Beijing lowered interest rates once and reduced banks’ reserve requirement ratio [RRR] twice this year.
Traders said on Friday they anticipate the central bank to lower banks’ RRR soon to ease a recent liquidity squeeze, triggered by regulatory requirements and a large initial public offer.
Isn’t that how the economic bubble and housing crisis started here in the US by lowering interest rates and reserve requirements for banks? The US government and Federal Reserve started allowing banks to lower their reserve requirements, meaning they had less cash on hand, in order to encourage more lending, leading to more speculation, and the eventual crash. Not a good sign in my opinion.
More Vivendi and Activision Blizzard news. Also an overview of the overall video game industry:
The first article here, talks about ATVI and in his opinion that the video game industry is in decline.
The second article is a more in depth discussion of the overall video game industry.
I would also encourage everyone to read the comments sections of both articles as there is a good discussion, and opposing views to what the article states.
The third article is a different perspective on Vivendi from another contributor on Seeking Alpha.
If anyone has thoughts on any of the above articles please feel free to post. Enjoy.