Wednesday, February 28, 2007

[china coughs] the world catches cold

Chinese youth - quite a few, aren't there?

Are you in the least concerned about this or is it just some boring old financial biz, nothing to do with you and besides, you hardly understand it?

Stock markets around the world plummeted Tuesday in a wave of selling set off by a plunge in China that was reinforced by worries of weakening economies. The falling prices continued in early Asian trading today. Though Shanghai's benchmark index was the first market to tumble, it was not clear what set it off.

But once the selling began, it spread first to other Asian countries, then to Europe and the United States. "It was sort of one of those days where somebody snaps their fingers, and the market's hypnotic trance is over," said Stuart Hoffman, chief economist of PNC Financial.

Does this worry you any? This power of China in the market economy, not to mention Stuart Hoffman's appalling grammar? I mean - what the hell's going on here? Would the former have happened twelve years ago?


Ellee said...

Cityunslicker has posted about this too, has this news impacted on the Russian Fed at all?

james higham said...

Early days yet, Lady Ellee.