Monday, August 31, 2009
Could this be a portent for the Britsh market
China's recovery in question as stocks plunge
I read this and thought it could be repeated over here at some point as the market realises that the bounce was based on expensive artificial stimulus and hype. "A sharp drop in Shanghai stocks and weak industrial data reverberated throughout Asian exchanges today and raised fears that China’s much-vaunted economic recovery may be built on sand ... The government-backed, six-month deluge of credit was supposedly leading China and the region out of its slump, although senior economists have warned that the cracks in that theory are now clearly visible."
Posted by wanderinman @ 06:47 PM (316 views)
3 thoughts on “Could this be a portent for the Britsh market”
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Agmoldham says:
I like the Times showing Wall Street down over 99% today at less than 100. Now that’s what I call a crash!!
mander says:
China probably not so interested in developing an economy based on property speculation. Credit will be cut.
gone-to-colombia says:
Very interesting post.
What happens in China is likely to have a dramatic effect in the west.
The mistake that has been made by many governments was to try to support everything by massive injections of cash.
Much better to have watched the fall begin and save what was worth saving.