China Biggest Worry For Markets

17 Mar

Fromt the Wall Street Journal:

Nervousness is growing in the financial markets about China, which might seem odd when there are so many other places to worry about.

There’s still Greece, for example, which is likely to be the focus of this week’s meetings of European finance ministers. There’s Germany, and its trade surplus. And there’s the U.S., the U.K. and all the other places with triple-A-rated debt that may not be rated triple-A for much longer.

So why the focus on China, where shares closed Monday at their lowest in five weeks, with the benchmark Shanghai Composite ending below 3000 at its weakest since Feb. 9? Well, as one bank put it on Monday: “Are we facing a ‘growth miracle’ or will China be the next bubble to burst?

Even the markets are more cautious on China than Australia’s financial powers, the RBA and the Treasury department. They still believe we are headed for 40 years of “unprecedented prosperity” on the back of a new China-fueled mining boom.

One Response to “China Biggest Worry For Markets”

  1. Barry March 17, 2010 at 10:40 am #

    Ahhh Barnaby, all this was prophetside years ago not by some religious nut but by two or three of cool headed geologists
    Hubbard, Campbell and Deffeyes, way back in the 1950 and 1990s.
    But no one, least of all politicians listened.

    What is criminal is the politicians are still not listening.
    Instead they are waffling on and on about global warming instead
    of waffling about the real threat.

    Welcome to the long emergency.

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