"China's extraordinary expansion of the past decade fueled booms in global trade, commodities and emerging markets. It was a major growth engine that turbo-charged Australia, Brazil, Southeast Asia and even Japan. Now, however, that engine is grinding to a screeching halt. Indeed, when historians look back to major pivot points of this global economic crisis, they will undoubtedly point to the abrupt end of China's boom."
With due respect, do not underestimate the power of the Chinese consumer, and their future capablilities in the manufacturing end. They will be a force to be reckoned with. There will be hiccups, no doubt. But don't write them off under the doom and gloom forever.
I have always said that the China story would turn out like Japan. Everyone thinks they will be a dominant economic force, but their investments in the US will turn out very badly and they will take it up the butt. They already are down bigtime with their investment in Blackstone and others. Nikkei was once over 30,000 and is now 8,000. Xinhua was over 30,000 and is now 11,000.
The Shanghai market has little or nothing to do with China's prospects - in fact it is - as in the case of all such speculation - the inverse of China's prospects.
Speculation is itself an indicator that capital cannot be invested profitably in the production of things that create real improvement GDP. The fantastic rise in American asset prices through the housing bubble was not a sign of economic progress, but an economic deadend with trillions washing through the markets seeking any kind of vaguely profitable use.
The same was true for the Shanghai market, since the government was deliberately starving the local markets in favor of exports. With the decline in exzports China has a much better opportunity for balanced domestic growth.
Unlike Japan - which has never been forced to limit its exports for fear its island economy would be cut off from needed imports - this economic collapse favors China's development.
lol, you mean the kind of quality manufacturing that came from sweat shops off Canal street before they realized that the they had to pay less for their slaves in China? At the rates that the retails are closing these days, the only place you will be buying clothes from is Walmart before this is over.