It was a known fact that whenever USA sneezes the world would feel it, On 27th China had stock sell out and fell by 9% due to rumours that China intends clamping down on lending to cool share price gain and corporate investment, however Alan Greenspan's comment was attributed to the downslide of Dow Jones by 3%. What exactly caused this mudslide? Was it the China factor or US factor? Are we seeing the paradigm shift where Shangai can dictate the world economy or was just a coincident?
2007-02-28 18:39:36 · 7 answers · asked by Dr Yahoo 3 in Politics & Government ➔ Politics
In case you haven't notices, China has been one of the hottest economies for the last few years. Have you been to Shanghai? Modernization there puts Manhattan to shame.
Much of this growth in China can be attributed to easy money. I am hearing stories of banks willing to loan you 120% of the sales price of a condo in Shanghai as long as you sign up on the deal to make monthly payment. They are paying you to buy the condos. Now that's easy money! The Chinese Govt is threatening to crack down on this kind of lending, and doing so will contribute to a slowdown.
Still, the concern is out of proportion. China is growing in the double digits. Unofficial numbers put growth at over 20%. This is too hot to sustain. It's good to trim this back to something around 8-10%. That's still healthy growth.
2007-02-28 18:50:06 · answer #1 · answered by justdennis 4 · 2⤊ 0⤋
The GDP of the earth is about 65 trillion.
China rates at about 10 trillion alone. The USA and the EU are each about 13 trillion.
When China economy hiccups, it is almost as much effect as the USA or Europe. With the interdependancy of the world economy, any problem with one of these big pieces is like running along and suddenly realizing your left leg is gone. You go down in the dust, have to figure out what happened, dust yourself off and start running again.
2007-03-01 02:55:00 · answer #2 · answered by Holden 5 · 0⤊ 0⤋
It's all interconnected. It's all about euros. And, China holds the mortgage to the United States of America. When we talk about Bush running up the largest national debt in the history of mankind, guess who loaned most of it to us? The five official economic regions of the world aren't going to let ANYONE catch a cold anymore. The only "adjustments" to be made are related to minor housekeeping issues, such as this silly transient euro/dollar tug-o-war.
2007-03-01 05:07:21 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Us has been telling china for years to adjust its its self inflated monetary system,this is what happens when you blow a bubble too long,just like the clinton admin with the "dot com boom" it boomed allright.I say we tax china 50 cents on every piece of crap import they ship over here pay our debt off and buy theirs.
2007-03-01 02:45:59 · answer #4 · answered by JOHN D 6 · 0⤊ 0⤋
Do you my friend china owns USA. They rule! Asia is todays world power and you better believe what they do is world noted , take heed and panic, learn or rebel is all the others can do and you know what they learned from the northern continent (USA) and have at all times done things cheaper and better!
to prove my point dig this!
MADE IN CHINA!
2007-03-01 02:50:09 · answer #5 · answered by wise 5 · 1⤊ 2⤋
I believe that WW III will be economic, and I think China will be our downfall.
2007-03-01 02:56:25 · answer #6 · answered by Joey's Back 6 · 1⤊ 3⤋
because it is epidemic.
2007-03-01 05:30:51 · answer #7 · answered by yogi123 3 · 0⤊ 0⤋