Will Chinese consumers come to Europe´s rescue?

Monday 30th January 2012

Colin Murphy of Torcana, an investment specialist which promotes property investment opportunities in Florida, explains how the Chinese could help improve the existing economic situation in Europe.

If the Chinese can be persuaded to spend more and save less, that might provide the opportunities western economies need to grow and pay down their excessive debts. Try to imagine the sheer quantity of products and services that hundreds of millions of emerging middle class Chinese will need for the first time during the next decade. It´s mind boggling. The rub is that this rosy scenario would require a huge transformation on both sides. 

Germany is often touted as the model to follow and while there is certainly much to admire and learn from Germany´s manufacturing and exporting prowess, it is not easy to replicate.

For example, telling Greece that it should be more like Germany is a bit like telling me to repay my mortgage by becoming a professional golfer - possible in theory, but not very practical for a high handicapper.  

These are all huge macro economic issues that will take decades to play out. There is no politician or banker alive today who has previously faced a situation like this and no matter how overpaid they might be, I would not want to be saddled with their responsibilities. 

However, it is equally true that the majority of people reading this, who still have a steady job and savings, have never faced an investment environment so ripe with opportunities. 

Opportunities

It is often said that the Chinese use the same word for "crisis" and "opportunity". While the unemployment and suffering that has occurred should never be taken lightly or disrespected, one of the biggest beneficiaries of the economic turmoil is the distressed assets industry. 

A huge range of companies, developments and individual properties have been bought by liquid buyers at prices that could scarcely have been imagined just four years ago. 

For several years, Torcana has been at the forefront of the distressed property industry in Florida sourcing hundreds of deals for buyers all over the world. In 2012, we will continue to work in this incredibly dynamic market.