US GDP GROWTH

Source: US Department of Commerce

I Read this article in equity masters and seems very intresting at this current scenario's of the world market.When we all are keen in predicting/thinking about, what will happen in monday market.?...may be this will boost the confidence of the investors.

Fourth quarter numbers for the US GDP are out. The US economy has recorded its fastest growth in six years as economy expanded 5.7% during the last quarter of 2009. However, thanks to the decline in the first two quarters, the US economy still ended the year about 2.4% lower, the biggest drop in 63 years and the first full year decline since 1991, reports CNN finance. Furthermore, it has been said that a significant growth in the fourth quarter has been due to inventory correction and government stimulus and the same may not be available during forthcoming quarters, thus putting a big question mark over the sustainability of the growth.

Jim Chanos, the man who gained notoriety by calling Chinese economy Dubai times 1,000, is at it again. He has argued in a recent speech that a bubble is building in China's financial system that could derail the global economic recovery. "China is the engine of growth that will hopefully pull us out of the morass that we find ourselves in. But the closer you look at that engine, the more you begin to see that it may throw a piston rod soon," Chanos is believed to have said. While he cautions that he doesn't expect a crash in China anytime soon, he is seeing classic pockets of overheating and overindulgence and has no doubt that there is a credit driven property bubble going on in China right now.

If what Chanos is arguing turns out to be right and if the bursting of property bubble does indeed affect other parts of the Chinese economy then the global economy would indeed be in big trouble what with the US also looking increasingly wobbly. However, if the Chinese authorities do manage to cool down their economy without any big trouble, then the dragon nation could certainly emerge as one of the most attractive investment destinations.