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Because Western economies have been in dire straits for over a decade. A drop like that would be significant and unlikely to reverse. The West has no economic g
by codesushi42 11y ago
Because Western economies have been in dire straits for over a decade. A drop like that would be significant and unlikely to reverse. The West has no economic growth engine to fall back on.
China has had so much astronomical growth that this drop doesn't undo all of that overnight.
If it continues, and it may very well, then you have a story.
Also, it's not good to create fear in the general public which is another reason to downplay this. If it's met with hysterical headlines, then the event of a crash in the global markets will be a self fulfilling prophecy. Markets react to group psychology and FUD in the general public.
- gscott 11y agoI just read that China has 21 trillion in their banks from people saving. It feels to me China has so many resources that they are unstoppable. Banks lend 10x the assets they have so that is 210 trillion available to lend. Not to mention the assets that the government has itself. There are so many state or partially state owned businesses that they can sell parts of. Even the debts of creating whole cities, it just doesn't seem to me that there is going to be any sort of damper on what China does. Especially with everyone wanting to throw money at them to get into business there.