Country/regions Update and others

USA
After election victory, obama should concentrate in the following areas:

• fiscal stimulus of the magnitude 1-3% of gdp for 2009 and maybe 2010 as well
  
• saving the auto industry from total collapse but avoiding bailouts which are costly to taxpayers, the industry must consolidate and uaw must give in to lower benefits and job protection
• all banks receiving govt support must not spend extravagantly or pay bonuses more than 1-2 years salary and that other employees must also be paid bonuses before management got paid so consumer confidence can rise early in the recovery to boost spending
  
• implement some form of universal health care
• cut wasteful govt spending such as support for farmers or biofuel mandate
• raise some form of duty on gasoline as crude prices fall to conserve oil reserves both locally and overseas
• retreat from iraq to cut military expenditure thus reducing govt deficits to free up resources for other areas.
  

CHINA
The fallout will be bigger than most thought as her citizens are not familiar with capitalist style crashes, many are trying to avoid facing the ultimate consequences by unconventional tactics such as property owners not paying mortgages and arguing that promises made by developers on prospectuses are not met. Most consumers in developed regions know the bank and developer are not one party and any action against one will not have effect on the other, but such consumer behavior hurt banks along the way.
The export sector which comprises many manufacturing concerns had already been hit by slow or reduced orders from us and europe, it will have repercussions throughout the service sector such as logistics, restaurants and leisure industry, banking, insurance etc.
Meeting the min 8% growth next year will be difficult.

EUROPE
UK is the hardest hit followed by a number of countries such as spain and italy. the ecb simply has maintained interest rates way too high for too long and it may get into a deflation spiral.

JAPAN
It may have the safest currency for the moment, but its aging demographics will push it into an everlasting zero or negative growth for a long long while if it does not allow immigration into the country which will boost consumer spending and property demand.

Expect zero interest rates policy by key central banks to fend off depression which inevitably will lead to higher inflation not too soon into the future.

One bright spot that may come is HSI which may climb as high as 20000 if it forms a w bottom with neckline around 15300.