Posted on 08/28/2015 6:44:22 AM PDT by TigerLikesRooster
The Great Fall of China
Fear about China’s economy can be overdone. But investors are right to be nervous
Aug 29th 2015 | From the print edition
ONCE the soundtrack to a financial meltdown was the yelling of traders on the floor of a financial exchange. Now it is more likely to be the wordless hum of servers in data centres, as algorithms try to match buyers with sellers. But every big sell-off is gripped by the same rampant, visceral fear. The urge to sell overwhelms the advice to stand firm.
Stomachs are churning again after China’s stockmarket endured its biggest one-day fall since 2007; even Chinese state media called August 24th “Black Monday”. From the rand to the ringgit, emerging-market currencies slumped. Commodity prices fell into territory not seen since 1999. The contagion infected Western markets, too. Germany’s DAX index fell to more than 20% below its peak. American stocks whipsawed: General Electric was at one point down by more than 20%.
Rich-world markets have regained some of their poise. But three fears remain: that China’s economy is in deep trouble; that emerging markets are vulnerable to a full-blown crisis; and that the long rally in rich-world markets is over. Some aspects of these worries are overplayed and others are misplaced. Even so, this week’s panic contains the unnerving message that the malaise in the world economy is real.
(Excerpt) Read more at economist.com ...
P!
Ever thus w/ Central Planning.
That's why we should never use tariffs.
I don't think Trump understands that.
Pei Ping.
Yes, and that’s why these headlines and stories mislead the public: instead of clarifying the issue they obscure it.
The problem with Japan isn’t a Japanese problem, but one of central planning. The problem with Chicago isn’t a Chicago problem, but one of socialism and central planning. The same thing with Italy, Greece, China, Argentina, Venezuela, Zimbabwe and Detroit.
It isn’t an ethnic, racial, or cultural problem, but a human problem. Scarcity is the natural state of mankind on this earth. We always want more than is available. History has proven since first recorded that central planning whether by kings or bureaucrats will fail. It’s the source of general poverty in the world. It’s the source of shortages.
But who will tell the people?
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