when one of the reasons that they gave for our large drop the other day was because of China's drop... it kind of surprised me...
are our economies that interlinked... and is that a good thing?
I mean I knew we had a lot of links, but not to that degree... or am I just reading too much into it...
2007-02-28 17:17:48 · 4 answers · asked by Anonymous in Politics & Government ➔ Other - Politics & Government
granted... all markets are connected... but that was a big drop... to me, it seems china's is much more connected... maybe I'm wrong...
2007-02-28 17:25:07 · update #1
First of all no matter what anyone says American and Chinese economy being interlinked is never a good thing. They have communist government whoes economy is controlled by the government while the US is a democracy and the economy is controlled by the market.
The chinese government let the stock market grow much much higher than they were supposed to be and many American firms invested huge amounts of money in China and now in one day there has been more than 100 billion dollar loss.
Their government would intervene and do something about it because it is government controlled but in the United States it won't work because it is market controlled.
Well I can write all day about it but I guess this should help you as a starter:)
2007-02-28 17:59:52 · answer #1 · answered by Xtrax 4 · 1⤊ 0⤋
Yes, China owns a lot of American equity. It also has the biggest dollar reserves in the world ( 900 billion) and can control the american economy
2007-03-01 01:57:30 · answer #2 · answered by brainstorm 7 · 1⤊ 0⤋
Every other market in the world dropped as well, not just ours.
2007-03-01 01:25:44 · answer #3 · answered by K 5 · 0⤊ 0⤋
well in our world today, we have a global economy. people from all over the world invest their money in different places all throughout the globe. so when one market is affected, all the others are.
2007-03-01 01:22:21 · answer #4 · answered by eriq p 4 · 0⤊ 0⤋