Why China will recover first

(moneycentral.msn.com) Bill Fleckenstein on why China will recover first.

Recently I traveled to China to deliver a series of speeches. During visits to Beijing, Shanghai and Hangzhou, I was fortunate enough to meet with some people who know a lot about how the country functions. In this week's column, let me share the highlights of what I learned.

I think the most important thing for folks to understand is that China has not suffered the epic credit binge that much of the rest of the world has. China's savings rate is high. Mortgages require sensible down payments. Credit is something that hasn't quite come to China yet (although I understand that credit cards have recently become more available, especially in the big cities).

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