Tuesday, February 27, 2007

Plunge of global stock markets

China starts the tide this time, by Shanghai and Shenzhen fell about 8% and 9%... Then Europe, U.S., and Japan all followed suit. Surprisingly, gold and silver price also fell, but bond and oil price went up.

There are a lot analysis around, but I believe the fact that U.S. economy is in trouble (the huge deficit and debt, crash of real estate, etc. ) is the root reason. Take a look at the history, all empires eventually collapse due to their military overstretch, which leads to economic meltdown and eventually fall of the empire.

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Life is an opportunity to do something.

2 Comments:

1983.song.wei said...

true
i've heard a lot Americans talking about that, including business school students and political groups like Larouche movement.

The foundamental conflict of capitalism...

Interestingly, retrospecting at the Black Friday at 1869, the stocks on top of the bubbles were telegraph companies. Now it's internet. The Americans never really changed.

10:22 PM, February 28, 2007  
Lei said...

aha, first time to learn that you are so interested in and concern about economy. I have no concept of that. I am just wondering, if global economy is indeed facing a hard time, will it affect the prospect of our application? I heard Wu say, a great shrinkage of educational fund followed the war in Iraq, rendering application much harder. However, many of my school mates are OK this year, having got their offers already.

As for the cases in human history, I suggest the analogy may not hold, since, as I see it, many unprecedented occurrences in human history now happen, implying some fundamental changes. After all, rules in social sciences can never be proved as are mathematical theorems.

1:47 AM, March 24, 2007  

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