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Thread: China's Gini coefficient is higher than all developed countries

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[quote=MARRIE,272001]`Clearly Unsustainable'

Greenspan's May 23 comment that the climb in stocks is ``clearly unsustainable'' echoed a comment by Li Ka-shing, Asia's richest man, that the market ``must be a bubble.'' People's Bank of China Governor Zhou Xiaochuan expressed a similar concern two weeks earlier.

Greenspan wasn't immediately available for comment on today's slide in Chinese stocks.

The biggest threat to growth at home and abroad might be psychological -- if a drop by stocks in the world's fastest growing economy prompts investors to retreat from risky assets, undermining markets elsewhere.

A burst bubble usually means trouble for a nation's broader economy, as it was in the U.S. when technology stocks tanked in 2000. History suggests that isn't true in China. Between 2001 and the end of 2005, the then-benchmark Shanghai Composite Index fell by half even as gross domestic product grew about 46 percent. And while the economy is the world's fourth largest, its market accounts for just 4 percent of global value.

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