Why did market slump have few effects over the economies?

Why did market slump have few effects over the economies?
Apr 14, 2008 02:36
YVONNE Points: Join Date: Nov 29, 2004 Status: offline	A report reveals that Chinese and Indian stock markets have fallen seriously compared with the peak time. It is said that Chinese stock market has slumped about 50 percent and Indian market performs better, suffering from a quarter fall. These falls have made many investors complain about the markets and be aware that they couldn't always make profits from the markets. But the slumps in both countries haven't caused serious effects on the economic development. It is said that US economy will be hurt deeply if such a slump (Chinese stocks fell about 44 percent) happens. Why didn't market slump cause serious effects? What did China and India do to prevent the side effects of the market slump?

Apr 14, 2008 02:36

YVONNE
Points:
Join Date: Nov 29, 2004
Status: offline

A report reveals that Chinese and Indian stock markets have fallen seriously compared with the peak time. It is said that Chinese stock market has slumped about 50 percent and Indian market performs better, suffering from a quarter fall. These falls have made many investors complain about the markets and be aware that they couldn't always make profits from the markets. But the slumps in both countries haven't caused serious effects on the economic development.

It is said that US economy will be hurt deeply if such a slump (Chinese stocks fell about 44 percent) happens. Why didn't market slump cause serious effects? What did China and India do to prevent the side effects of the market slump?

Apr 14, 2008 10:34	#1
GUEST21219	The Chinese stock market is a speculative market. This "loss of wealth" is an abstraction, and not the loss of real productive, economic output. Hence, little or no immediate economic impact.

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