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Greece
As the Greek debt drama plays itself out one 60-euro withdrawal at a time, some economic observers are saying the world is paying attention to the wrong crisis.
That's because in the space of three weeks, China’s Shanghai Composite stock index has lost nearly 30 per cent of its value, wiping out some $2.3 trillion U.S. in wealth. As Bloomberg News put it, that’s a loss of $1 billion for every minute of trading. Regulators have halted trading in more than 700 listed companies, and at least two dozen IPOs have been cancelled.
And some economists fear the country’s response to the downturn could be worse than the stock market crash itself.
There is a reason we haven't been hearing about the wonders of China's command economy for a while. It's in free fall. The Chinese government reactions to this are a good indicator why their problems will likely get much worse. They are focusing on all the worng things, taking actions that seem more driven by pride than fiscal pragmatism.
As the Greek debt drama plays itself out one 60-euro withdrawal at a time, some economic observers are saying the world is paying attention to the wrong crisis.
That's because in the space of three weeks, China’s Shanghai Composite stock index has lost nearly 30 per cent of its value, wiping out some $2.3 trillion U.S. in wealth. As Bloomberg News put it, that’s a loss of $1 billion for every minute of trading. Regulators have halted trading in more than 700 listed companies, and at least two dozen IPOs have been cancelled.
And some economists fear the country’s response to the downturn could be worse than the stock market crash itself.
There is a reason we haven't been hearing about the wonders of China's command economy for a while. It's in free fall. The Chinese government reactions to this are a good indicator why their problems will likely get much worse. They are focusing on all the worng things, taking actions that seem more driven by pride than fiscal pragmatism.