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Financial news I consider important, with my opinion, which is worth as much as you paid for it.

Sunday, June 20, 2010

China Three Gorges Dam

China's Three Gorges Dam is one of the largest (if not the largest) Engineering mega projects.
Over 1.4 million people where forced to move, and large area of land put under water, covering many historical sites. This Mega project is one of the symbols of China's progress as a world leader. But this, like many other news items I have posted on China, have some fundamental issues. The issues are not being able to be kept quiet by the Great Firewall of China.

For stock markets, this isn't on it's own significant, but as a collective impression as China as the next great society. If it fails, it will turn many opinions around and could trigger some bank failures around the world that invested in the project.

To me, this smacks on why communism can't work, and neither can "command and control" government like Obama administration is promoting. When economic decisions are made for political reasons, the result is never good.

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