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Burton Malkiel, Princeton University economist, weighs in on China’s GDP and economic growth.
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Reported that this global stimulus solar.
Countries the world over are doing all they can to prevent the world from rolling over just -- case.
You find this curious in England where there talking up their own quantitative easing to keep rates low.
It's a country that literally knows Q -- they have a point.
In China but where there are already taking their already low rates and they're taken and really.
And in the European Union where they're driving down rates to all time lows will burden -- -- says this is assigned the world.
Earnings and its -- for very good reason is the author of a random walk down Wall Street.
Bible reading.
For anyone who covers Wall Street bomb or what is going on here and the odd confluence of I don't know stimulus the world over here.
Well the -- clearly slowing down our economy is slowing down in the United States Europe is in recession.
And China is slowing down.
Dramatically now.
I don't think this is a crash and burn for China.
But when China slows from 1011%.
27 to 8%.
People.
Again at the notice so there's no doubt the economy is slowing down.
And Europe is in a very severe recession.
And things aren't getting any better.
You know of the China news stood out the most to neighbor because of I guess a sense of urgency that was very clear deterrent as they normally don't want it looked frantic.
They don't -- -- look desperate not that they looked frantic are desperate but they looked alarmed.
And I'm -- if if the world's fastest growing economy.
Is sounding.
Sense of urgency.
Should we be concerned what that means because they've been driving this global puppies so what now.
Well one of the reasons that China is slowing down.
Is that it has been very much an export led economy rank and exports.
Have not been growing the way that they were in the past.
Europe has slowed down dramatically.
And Europe was a big market for Chinese exports and of course the United States has been.
Slowing.
You know -- -- growing but.
Very.
Very little.
So what does this time exerting its influence in this region of the world of the Strait of Hormuz where you know.
They're gonna be aired as much as anyone if oil prices skyrocketed that even just the threat -- -- raising before of the blockade.
So.
Why isn't China doing more here.
Well are they worried that they can't do more here and that they're just hapless victims -- -- zero -- this is.
You know theater ahead of that so they're trying to ready for that what.
Well I think -- absolutely right China has in some sense.
Much more to fear.
Than we do in the United States because the one good thing about our economy.
Is that oil production has really been booming and we are becoming less and less dependent on the Middle East and I think that's a terrific thing.
China ought to be even more worried and my guess is that -- -- in China you're in.
A leadership change.
That is kind of a lot.
Going on May be they feel there's too much on their plate.
But I think eventually -- China will play an important role and they -- -- Because you're absolutely right they've got an awful lot to lose.
You know -- just a random walk down some of these Wall Street numbers of late Burton -- -- Italy we've got a good roughly first half of the year I'll be it'll it can relatively low -- -- But it is what it is a good first half of the year -- most.
On what he -- whether the second him.
I really think that equity is in the United States particularly.
Attractive.
Not that we're going do go off to the races and our growth that will have something in the vicinity of 2% growth in the United States.
Corporate balance sheets are in still great shape.
The third quarter earnings which are about to -- I think -- gonna be.
They do not going to be gangbusters but they're gonna be OK.
And the alternative.
Of buying a ten year treasury at one and a half percent.
The alternative is just terrible because that to me is -- sure looser for investors.
Burton thank you was -- -- appreciate it.
