David Goldman: China a 'Steady State' Economically

The video discusses China's economic situation in 2016, focusing on the housing bubble and the People's Bank of China's response. It highlights the enthusiasm for investment in China, leading to speculative behavior in the housing market. The video also covers China's shift in monetary policy, the transition to a service economy, and the potential impact of a housing market bubble burst. It concludes with a discussion on market speculation and investment strategies.

What was identified as China's biggest problem in 2016 according to the People's Bank of China?

• Trade deficit

• Unemployment

• Inflation

• Housing bubble

What economic transition is China undergoing according to the transcript?

• From a market economy to a planned economy

• From a capitalist economy to a socialist economy

• From a smokestack and export economy to a service economy

• From a service economy to an export economy

What is the potential risk associated with the Chinese housing market?

• An increase in inflation

• A significant drop in housing prices

• A rise in unemployment

• A decrease in foreign investments

Why are companies like Unilever and McDonald's considered 'least bad' investments?

• They have low earnings

• They are undervalued

• They offer strong cash flows despite high valuations

• They are in declining industries

What is the impact of central bank policies on equity valuations?

• They increase the cost of borrowing

• They keep discount rates low, affecting valuations

• They lead to higher inflation

• They cause currency devaluation