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AnonymousThis is so true. I have been seeing this patter lately too. It's amazing what is happening in China and it all looks like China is losing its control on their economy. I think something like this happened last November too. Their Market crashed and they devalued their currency. Now their market crashed again and they put in millions of yuan on their market to help it lift up.
edited by cgonzalez on 1/6/2016
AnonymousIt is very interesting that this conversation about China's economy is suddenly on the forefront of everyone's mind. Just a few years ago, when we were barely escaping the wounds of the 2007 housing crisis, America was living in fear that China would become an overpowering force. Now less than a decade later China has taken a hit. What is truly causing this decrease in the market? The article brings up a good point that for a long time China was just growing too fast. Now maybe it has reached a plateau or a norm for it's nation. Someone else recently posted about the one child policy being one of the essential burdens for China. The article stated that soon China will have a population with a majority of seniors and too many young people that may not be able to hold up the economy. This topic is definitely something I want to keep following.
AnonymousI listened to a story on the radio a couple of days ago and it mentioned that the slowdown in manufacturing has been intentional as China starts its transition to a service economy. The story stated that the slowdown was planned and the Chinese are not too worried about the slowdown. I am not well versed in economics, but that sounds a bit odd to me because everyone else seems really concerned. My realtor called me today and asked me what my interest rate was on my mortgage because he told me that within the last week, rates have been going down. Again, I don't know how true that is either. The FED has been saying for a while now that they were actually thinking of raising rates. All in all, the Chinese economy is definitely making people jittery here in the states.
Rob_Hugo@PortNWI feel like we talked about this in class, so its interesting that it keeps coming up. To summarize, the 5 main concerns with China's economy include: Growth is slowing, growth might be slowing more than Beijing says, rising debt, loosening grip by leaders on currency, and access to growth by U.S. businesses. The impact of Chinese markets on U.S. markets might be an interesting topic to discuss with students, especially in an Economics class.
http://www.latimes.com/business/la-fi-china-economy-stocks-20160105-story.html
AnonymousThe immense power that China has over world's stock exchanges. U.S. stock exchange saw the biggest drop January! It is mostly blame on the China's economic slow down. The selling of stocks by Chinese investors and the government closing the exchange by mid day. Since China closed their exchange during the day, it made the rest of the world's economy very nervous prompting economic scares. The U.S. stock exchange saw the worst loss.