Shout Out 1: Matt Alexander

Shout out to Kenneth Kim, who wrote the very interesting article on forbes.com titled “What’s Going On With China’s Stock Markets and Economy?”. We touched on the volatility of Chinese Markets and how the stock markets have been shutting down through circuit breakers set up by the government after prices fall a certain amount. He argues that this system is a bad idea and only serves to “incite panic rather than to reduce it”. From what I know about the issue, I tend to agree with him. If the stock market is shutting down every day from price dropping, that will not stabilize prices but rather cause panic and lower them further when they come back on the next day. Kenneth also addresses some misconceptions about the economic collapse, saying that he does not believe there is any real economic justification for the the market collapse and that the government is not pushing prices down on purpose. The article ends with saying that even though China’s growth is down, it is not in a recession and is even doing a better job of growing than the US is. It is a short but informative read and I recommend looking into it to learn more about the state of the Chinese economy.

What’s Going On With China’s Stock Markets and Economy?

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