The Chinese Economic Recovery

The Chinese cut interest rates overnight in an effort to try to stimulate the economy. The second quarter on a sequential basis, if I look at my old Morgan Stanley team, sequential growth for the second quarter, is a number close to zero. And they're moving, I think, pretty aggressively to provide some stimulus to housing and infrastructure. But you know, my concerns about China are really more fundamental than that. They've got big longer term growth issues underscored by the twin pressures of demography and weakness in underlying productivity. That's sort of a Japanese like problem that has up until recently really hobbled Japan for decades and could prove far more problematic from China for China than they ever thought.