July 2, 2015
Everyone seems fixated about Greece’s future in the euro zone.
Pat the same time, overlooking the economic consequences of a stock market slump on the other side of the world. CHINESE equities have dropped more than 20% — yet it is causing barely a ripple in global markets!
To read the entire article, go to http://bloom.bg/1em9W1S
China has seen a a 3-week plunge in Chinese equities. Some calculate a massive $2.4 Trillion loss in China market value. That is calculated as the equivalent of about 10 times Greece’s gross domestic product last year.
How much longer must Chinese stocks continue dropping at this steep pace before the economic shock fears shift away from Greece?
Which economic indicator means more to emerging nation resources and transport infrastructure plans? Hands down, it would probably be the China drop.
Will Chinese equities recover? Will China’s government step in with a recovery program?
If a bubble burst, how will the global economies react to a China crisis versus all of the attention on Greece?
What is your opinion? Jim