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There were big falls in stock markets through out the world due to a fear that china's economic boom is coming to an end. What do you think about it?

2007-02-27 11:05:01 · 3 answers · asked by Hello 2 in Social Science Economics

3 answers

China economic growth not coming to a end.
1. They way overproduce and undercomsume that should bring economic growth.
2. Hot Money into the markets, and combination of goverment perversion in lending will lead to fat trimming by the Communist leadership
3. America went thru boom, busts, from time to time to grow the economy.
4. China will grow 8% this year still, and investors wont pull out of a market where the returns are too high not to pass up.
5. The stock market thump is market correction to rid of excess speculation, and drive out more risky investments is all.

2007-02-27 11:13:59 · answer #1 · answered by ram456456 5 · 0 0

The answer is no. The stock market is mostly based on speculation, that trigger massive buying or selling of stock shares. It is not a real reflection of the state of the economy, especially if the fluctuation in the stock market is short term. Heard the news that NYSE stock markets shares fell because of the assasination attempt on Dick Cheney in Afghanistan?. This is an example of a short term trend (a few days or so at the most), that has no real bearing on the general state of America's economy. The sharp fall in the NYSE stock shares shortly after the 9/11 attack was another example.

What you are saying can be true only if the stock market shares continue to plunge for months or years on end without any recovery. When that happens, then you can say that China's economic boom is really at an end.

2007-02-28 07:47:47 · answer #2 · answered by roadwarrior 4 · 0 0

as long as they pay their workers slave wages, they will grow faster than us. let the outsourcing begin! or introduce slave wages here....oh wait, we already got that its called minimum wage. as long as that doesn't go up and the cost of living increases, there will be more and more slaves! slavery is back, baby! praise George W Bush! slavery is back!

2007-03-03 16:17:38 · answer #3 · answered by Anonymous · 0 0

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