The Smartest Man In Europe Is Bullish on Asia (Byron Wien)
7.30.2004
I feel like I've been articulating this for a long time, but finally someone with much greater credentials, more grey hair, and of course a larger mouthpiece is singing a tune I can dance to!
Tech Central Station - The Smartest Man In Europe Is Bullish on Asia:
"The gap is growing between the energetic economies of Asia -- notably China, India and the Tigers of Taiwan, Singapore, South Korea, Indonesia, Malaysia and Thailand -- and the mature, complacent economies of the West, and I am not exactly sure what that means for investors."
"The problems in Europe are well known," says TSMIE. "The population is aging, the economy is mature. . . . People put living the good life ahead of working hard." He goes on, "The American bloc isn't much better. . . . The U.S. has grown soft. No politician can propose anything that involves sacrifice. . . . Your manufactured products are uncompetitive, and you don't provide the necessary incentives to expand the knowledge-based industries where you have an advantage.
"The increasing cost of health care and retirement benefits will be a drag on U.S. profitability and will discourage investment. Litigation costs are a terrible drag." TSMIE concedes that, as the dollar declines, U.S. products will become more competitive. He also respects our lead in biotechnology and nanotechnology, but he concludes, "The Western countries, including the U.S., have to face up to the fact that their standard of living will decline."
"Both China and India have an educated population willing to work very hard for modest wages. Every year, China moves further along the curve of manufacturing sophistication. . . . Asian countries provide few health care benefits, and there is no plaintiff's bar. . . . It is a free-wheeling business atmosphere, much as I imagine America was in the days of the Wild West."
"Measured by "purchasing power parity" -- that is, the buying power of local currency -- China is the second-largest economy in the world after the United States, and India is fourth, ahead of Germany, France and Britain."
Tech Central Station - The Smartest Man In Europe Is Bullish on Asia:
"The gap is growing between the energetic economies of Asia -- notably China, India and the Tigers of Taiwan, Singapore, South Korea, Indonesia, Malaysia and Thailand -- and the mature, complacent economies of the West, and I am not exactly sure what that means for investors."
"The problems in Europe are well known," says TSMIE. "The population is aging, the economy is mature. . . . People put living the good life ahead of working hard." He goes on, "The American bloc isn't much better. . . . The U.S. has grown soft. No politician can propose anything that involves sacrifice. . . . Your manufactured products are uncompetitive, and you don't provide the necessary incentives to expand the knowledge-based industries where you have an advantage.
"The increasing cost of health care and retirement benefits will be a drag on U.S. profitability and will discourage investment. Litigation costs are a terrible drag." TSMIE concedes that, as the dollar declines, U.S. products will become more competitive. He also respects our lead in biotechnology and nanotechnology, but he concludes, "The Western countries, including the U.S., have to face up to the fact that their standard of living will decline."
"Both China and India have an educated population willing to work very hard for modest wages. Every year, China moves further along the curve of manufacturing sophistication. . . . Asian countries provide few health care benefits, and there is no plaintiff's bar. . . . It is a free-wheeling business atmosphere, much as I imagine America was in the days of the Wild West."
"Measured by "purchasing power parity" -- that is, the buying power of local currency -- China is the second-largest economy in the world after the United States, and India is fourth, ahead of Germany, France and Britain."
