Friday, January 8, 2016

Economy: What We Could Learn From Ford

(Drivebycuriosity) - The stock markets are in panic mode. Many are selling because they are scared by speculation on a crisis in China and the claim that collapsing oil prices will cause a global recession. Really?

This morning we learned that Ford  China sold 124,768 vehicles in December, a 27% increase from last year's level (seekingalpha.). How can that be? If China would have a crisis, how could the Chinese buy so many more cars? I think that the strong Ford numbers are a sign that the Chinese economy is stronger than the media tell you. They also show that people worldwide respond positively to the lower oil prices.

Today we also heard that the US economy is doing fine. The US economy added 292,000 new jobs,  in the months before the US economy also created monthly more than 250.000 new jobs (seekingalpha).  Both, the US and the Chinse economy are far away from a recession and the recent stock market drops are just a sign of mass market hysteria.

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