Tuesday, July 7, 2015

China's Domestic Stock Problems

While some have talked about China and Russia bailing out Greece for a camel's nose in Europe's tent the simple truth is that Russia can't afford it with oil prices this low(more on this later) and China looks to be having some problems of their own.

Of course if you've been paying attention it might strike you that building cities that nobody lives in combined with sub-replacement birth rates hasn't been a sign of good things economically in the rest of the world so I'm not sure why anyone thinks this is any different in China. Now there are still differences as to where China is on it's demographics bubble compared to Europe, as well as the advantages/disadvantages that a still authoritarian government brings to situations like this.

Still if China goes into a depression that the powers that be can't keep quite it will make the PIIGS of Europe look like a leaky roof on a global economy house that happens to be on fire.

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