this is an expected market correction based on the overvaluation of chinese stocks. this is a classic stock bubble a la the tech boom of the 90s in the US. this is likely to have constrained global impact because most of china's stocks are held domestically. of course with the current globalized environment and trade interdependence, it would be silly to say that this wont have wipespread impacts on the global economy. but it won't be the pandemonium you're trying to suggest.
the chinese government has plenty of tools at their disposal to slow down the effects of the crisis, and they plan to intervene as much as possible over the next few months. so unless you live in china, you probably won't be thinking about this much a month from now.
but of course we'll see.
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