Monday, December 7, 2009, 7:00PM ET - U.S. Markets Closed.

China Stimulates the World, But U.S. Fails to Ignite

Posted Nov 10, 2008 11:27am EST by Aaron Task in Investing, Newsmakers, Commodities, Banking

"We must implement the measures to ensure a fast and stable economic development...They are not only the needs of the development of ourselves, but also our biggest contribution to the world."

Or so declared China Premier Wen Jiabao upon announcing his government's staggering $586 billion stimulus package. As a percentage of GDP, China's action is akin to a $2.5 trillion stimulus from the U.S. government.

So we are talking serious money here and financial markets responded, at least initially. Asian markets soared while commodities also rallied, giving a boost to producers like Freeport McMoran. European bourses also advanced and the U.S. opened with strong gains, although the advance dissipated by mid-morning amid continued weakness in financials like Goldman Sachs and GM, the latter after Deutsche Bank lowered its price target to zero.

Perhaps many traders agree with Howard Lindzon of Knight's Bridge Capital, who says the stock market has become even more of a casino than normal lately. Given the continued stress in the hedge fund community, Lindzon says he is trading very little and content to miss the bottom - which he doesn't expect to occur anytime soon, regardless.

41 Comments

madmilker
madmilker - Monday November 10, 2008 11:34AM EST

and they did it with the USA dollar....go figure!

__A_YAHOO_USER__
__A_YAHOO_USER__ - Monday November 10, 2008 11:38AM EST

Will they import for us on infrastructure products and technologies and material....If so the better......

Yahoo! Finance User
Yahoo! Finance User - Monday November 10, 2008 11:44AM EST

That is big stimulus........Will that has an effect to make the world moving foward....?....

Mark
Mark - Monday November 10, 2008 11:51AM EST

The sun is rising in the east and setting in the west

Yahoo! Finance User
Yahoo! Finance User - Monday November 10, 2008 11:51AM EST

China didn't do anything to stimulate the world. China is stimulating itself.

Harold
Harold - Monday November 10, 2008 11:53AM EST

LOL.. AIG was given more money to borrow. LOL... earnings are down. And the stock market is up. Go figure. lol IT'S ALL GOOD. LOL

sportsmadness
sportsmadness - Monday November 10, 2008 11:54AM EST

No it will not help the world go forward when most businesses are reporting losses and layoffs. I mean are in a coma or are you just as dumb and oblivious to the stock market as these lame analysts.

madmilker
madmilker - Monday November 10, 2008 11:56AM EST

jus how in the he!! can you ignite a country when 90% couldn't flip a Bic and the other 10% have no match! If you want to ignite something jus red...oops! read how the jack@ss is gonna take your 401 and IRA away and make you serve....can't wait for tat number 56 star to appear and we the people will all know when tat number 57 (State of Turmoil) gets here.

Misled
Misled - Monday November 10, 2008 12:04PM EST

The Chinese are re-announcing commitments that were already part of their plan. They have been planning a 1.2 Trillion Yuan railway building project since well before this crisis. And part of this "new" package covers earthquake rebuilding in Sichuan province. This had to happen regardless. This package is really only about half what it is reported to be.

sportsmadness
sportsmadness - Monday November 10, 2008 12:07PM EST

The failure to ignite??? DUH .... Circuit City goes bankrupt, GM is a big failure, More layoffs? I guess government intervention is not always the best medicine.

Bob
Bob - Monday November 10, 2008 12:23PM EST

You can't fight justified fear. No one reading this will live long eough to see the market come back. The lack of personal shame and the acceptance of crooked behavior as the norm (e.g. Bush attending Ken Lay's funeral, Etc with a capital E) guaranteed the collapse of institutional integrity. All of this stimulation is nothing more than a form of financial masturbation. You literally, cannot throw enough money at this to have any long term effect. Welcome to the modern dark ages.

Yahoo! Finance User
Yahoo! Finance User - Monday November 10, 2008 12:24PM EST

Stimulate a sector or a 1000 sectors, Oil and energy in general are basic building blocks. Until we have cheap energy every one of the governent interventions will go flat.

sportsmadness
sportsmadness - Monday November 10, 2008 12:28PM EST

Well Mr. Huang I understand the bailout dissemination of the money. But in the U.S. our Congress wants the second type of bailout. What the hell ever happened to State budgets and letting them figure out how to handle that. I live in Alaska ..... and I dont want to bailout another States stupid road problems.

Jack deee
Jack deee - Monday November 10, 2008 12:36PM EST

What a bunch of random rubbish. There is no reason to think we are heading over a cliff. All these doom sayers have been wrong time and time and time again. Sure it is bad but no the end of the world. I am still buying good stocks when the chance presents.

Peter
Peter - Monday November 10, 2008 12:43PM EST

Electric cars from GM is the answer to renewed prosperity.

mahsen
mahsen - Monday November 10, 2008 12:43PM EST

mbn k ةىال ةتل ةةةةةةةةك ومنم تن ت تعت ت نهن

__A_YAHOO_USER__
__A_YAHOO_USER__ - Monday November 10, 2008 01:07PM EST

Firearms & ammunition is selling very well across the country.I wonder what that means?What stocks are they under!May want to purchase.

Yahoo! Finance User
Yahoo! Finance User - Monday November 10, 2008 01:08PM EST

China's plan is better then US. US is giving money to those banks. Why we America have to pay for those stupid CEO for their mistake while those CEO's still make big money.

rubyv
rubyv - Monday November 10, 2008 01:24PM EST

Enough alreay ,this is not a right or left issue that we are confronting, this is a universal and global crisis creating by a system that uses to work ,but no longer. Unless we start from scratch we or our children will be in the same situation again 15 to 20 years from now. People toke risk let them pay the price.Coorporations are often to big they lost focus and the Gov. had allowed them to. The government should come to the help of those that did'nt .That is the only message to send to those "COUNTRY DESTROYERS"

tony g
tony g - Monday November 10, 2008 01:47PM EST

CHINA IS CONTINUING TO OUT SMART AND GOVERN BETTER FOR THEIR PEOPLE AND THEIR FUTURE GENERATIONS THAN OUR INEPT GOV.EVER WILL MOST THIS MONEY WILL NEVER LEAVE CHINA. IT WILL STAY AND FURTHER IMPROVE THEIR INFRUSTRUTURE AND PAD THEIR PEOPLE'S POCKET AND SPENDING POWER FOR THEIR PRODUCTS TO REPLACE THE LOST CAPITAL OF THE U.S. CONSUMER. WHILE INVESTING IN CHINA'S FUTURE STRENGTH. IMAGINE THAT A COUNTRY THAT THINKS ABOUT THEIR WELL BEING AND FUTURE INSTEAD OF THE REST OF THE WORLDS!

Yahoo! reserves the right to refuse, or remove any comment that does not comply with the Yahoo! Terms of Service. The submission of spam, hateful, or obscene messages may result in the termination of your Yahoo! ID.
About Tech Ticker - Send FeedbackDisclaimer. Copyright © 2007 Yahoo! Inc. All rights reserved.
Copyright/IP Policy - Terms of Service - Privacy Policy - Help
Quotes delayed, except where indicated otherwise. Delay times are 15 mins for NASDAQ, NYSE and Amex. See also delay times for other exchanges.

Quotes and other information supplied by independent providers identified on the Yahoo! Finance partner page. Quotes are updated automatically, but will be turned off after 25 minutes of inactivity. Quotes are delayed at least 15 minutes for NASDAQ, NYSE and Amex. See also delay times for other exchanges. Real-Time continuous streaming quotes are available through our premium service. You may turn streaming quotes on or off. Fundamental company data provided by Capital IQ. Financials data provided by Edgar Online. Historical chart data and daily updates provided by Commodity Systems, Inc. (CSI). International historical chart data, daily updates, fund summary, fund performance, dividend data and Morningstar Index data provided by Morningstar, Inc. Analyst estimates data provided by Thomson Financial Network. All data provided by Thomson Financial Network is based solely upon research information provided by third party analysts. Yahoo! has not reviewed, and in no way endorses the validity of such data. Yahoo! and ThomsonFN shall not be liable for any actions taken in reliance thereon. All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.