Global Outlook: Big Spenders And Penny-Pinchers

In the US, extravagance is a normal way of life. In China, it is a sin. Such contrasting consumer psyche between the two economies needs to be evened out before a sustained recovery of the post-bubble global economy can be achieved in the longer run, says Stephen Roach, chairman of Morgan Stanley Asia. In a talk given to the Asia Society Hong Kong Centre entitled "Pitfalls in a Post-Bubble World," Roach warns that the pain of the global recession caused by the bursting of asset and credit bubbles has only just begun to take its toll on export-dependent Asian economies.