Tuesday, March 20, 2012

More Negative Signs Out of China

Scott Stark emails:


I am an EPJ Daily Alert subscriber and avid EPJ reader/promoter.  I wanted to share a Bloomberg article on China I read today that seems to contain the kind of anecdotal evidence of the coming collapse you like to point out (not that it's hard to come by these days).

They report:
Mercedes dealers are offering record markdowns of 25 percent on high-end models such as the S300 sedan, according to data stretching back to 2009 at cheshi.com, which tracks prices at more than 3,000 Chinese dealerships. Bayerische Motoren Werke AG (BMW)’s 7-series and Audi AG (NSU)’s A8Ls sell for 20 percent below sticker prices, waiting lists have vanished and salesmen are dangling perks ranging from free iPhones to Hermes-bag coupons. 
Unfortunately the author attributes this to "supply catching up with demand" and largely misses the severity and cause of the problems over there.

1 comment:

  1. The headline news on the radio even mentioned a "slowdown' in China and how that affected stock prices today (?) so others might be noticing it too.