On China’s Imminent Stock Crash
I take no position one way or the other on any Chinese stock market crash, but I am certainly impressed by the analysis in this Asia Times article written by Martin Hutchinson of the Prudent Bear (h/t to the China Economics Blog). The article is entitled, “The Coming China Crash” and it claims a crash is “imminent” due in large measure to China’s “lack of a rational system of capital allocation.”
China Matters also has a very thoughtful gloom and doom post entitled, “We Interrupt This Blog To Announce the End of the World.” The post is based on this Roubini post asserting that China is not decoupled from the US economy.
Of course, not everyone agrees.
I was one class short of an economics major, which means I studied just enough to know that economist’s predictions are correct about half the time.
On a somewhat less gloomy note:
An economist, a physicist and a chemist are stranded on an island with one unopened can of food. The physicist suggests they roll the can down a hill where it will strike a rock which will pierce the can and release the food. The chemist suggests they cool the can in the ocean then heat it in the sun so as to cause the can to burst. The economist suggests they assume they have a can opener.
Source: China Law Blog
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