Similar headlines in the news today surfaced around the stock markets oversea's in China being down 8.8%....is this spelling out a change in who the world economic leader is, because it doesn't seem to be the U.S. anymore? Being as the U.S. owes China so much money, and the drop in their stock market rippled over into the US market it would seem China is the worlds economy.
2007-02-27 08:05:57 · 3 answers · asked by onenonjohn 1 in Social Science ➔ Economics
Their slowing economy likely means that they'll stop buying up so much debt; which means that their currency will rise and their goods will be more expensive in the US.....this will hurt our economy.
However, on the flip side, a slowing Chinese economy means that oil prices will go down.
2007-02-27 08:25:45 · answer #1 · answered by Anonymous · 0⤊ 0⤋
China started saying, no, no , hot , money? Probably drop another few percentage points in the stock market, but im not worried it needed a correction. Inventory levels are high, and the economic data from the United States was too rosy.
Still, at the end of 2007 probadly see a rate cut to move some of that excess inventory from cars, wood, tiles, golf clubs made. The companies betting against the stock market probadly having celebrations right now, but the American economy should grow around 2.2 to 2.6% this year. Just think of Dow drop as correction in too much speculation, and housing market will probadly see bigger losses. The 90% of the other sector should do fine here just housing, and subprime market that vulture food for the time being
2007-02-27 18:54:24 · answer #2 · answered by ram456456 5 · 0⤊ 0⤋
Mass pandemonium in the markets.Everyone needs to take a breather first and not have the typical knee jerk reactions.
2007-02-27 16:16:08 · answer #3 · answered by Anonymous · 0⤊ 0⤋