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[quote=APAULT,266686]Stocks are not the economy. The fall in prices is an over-reaction by a minority, many of whom were caught out because they were borrowing money, or were simply short term gamblers. Remember a very tiny proportion of the total number of shares were traded. Most shares are held by institutions who are mostly invested for the long term. Don't forget that for every share sold in panic there was someone else grinning with pleasure at the opportunity of buying at a discount. Yes this might slow Chibna's economy a shade...but fantastic, that's what the government wanted! It will also reduce some of the demand for raw materials from the rest of the world so that can only help reduce the top prices that China is paying now. Actually, this is why China needed a slow down, fast growth has caused inflation because supply hasn't been abe to match it. Maybe the markets have further to fall , but that's just part of the shake out. I would still call what we are experiencing a correction rather than a recession or a real bear market. The investment advisors are all saying hold on, they know the real economises are sound.[/quote]
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