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Thread: What impact will Fed interest cut have on China's economy?
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[quote=AL32,247720]My guess, and I'm no economic guru here, is that both the US housing and stock market will slowly but surely recover. The Fed's interest cut (or hikes) always created a punctual reaction in the stock markets but no very tangible major or long term effect. The current US$ weakness may play in favor of more (US) exportations and less importations, so Chinese exportations and economy -since the Chinese trade surplus with the US is so high- might suffer until that US high-risk mortgage crysis resorbs itself. I also believe that the US economy is still very strong no matter what the alarms we get from the Fed and their stock markets...so it's just a question of time before everything gets back as it was. Although, I really do not know what to expect about the Chinese stock market. Surely, China's economy has been developing rapidly and constantly for years, but its stock market just looks like a gold rush to me and it is mind puzzling to think about what its future will hold. Woohoo!!!! 100 points in TCG in less than 2 weeks; can I cash in on any of these ?!? [/quote]
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