Stock Markets Exposed

How did the european and US stock market got affected by chinese market loss?

Public Comments

1. The Chinese Market is heavily invested by the Global Giants in Investment and as soon as some thing happened in the Chinese markt, the extra sensitive investors ordered their Banks to withdraw from there , resulting in heavy sales and consequent lowering of the indexes. The volume of high density investments from Europe and the US and Canada in the Asian Market is like the tip of the Ice berg. What is apparent is only a small fraction of the total. That is why the shock effect is high.
2. The European and United States stock markets, in this so-called "Global Economy," are closely bonded to the Chinese Stock Markets because cash heavy China provides liquidity in particular to the impending insolvent American economy. The United States economy, debt ridden due to huge budget deficits relies upon and receives approximately $2 Billion per day from Asia countries, $1 Billion alone from China, in order to function short of collapse. Because of China's booming enonomy, at least as of now, it has generated sufficient surplus funds to purchase it's own stock market securities, 10% private, 90% government, and most importantly United States Government Securities required to keep the American economy afloat. If and when the Chinese surplus diminishes, the American economy will most likely suffer irreparable harm and we, as Bill Gates and Warren Buffett predicted once oil is no longer based upon the U.S. dollar, will take our place alongside third-world countries as an inferior economic power. Many in the United States, including the Federal Reserve Chairman, Secretary of the Treasury, and other "Spin" artists wrongly claim the U.S. slide was merely a coincidence, or "routine adjustment" and not a direct result of the Chinese market collapse. For those who support the "Global Economy" concept, a collapse in the American economy will not be met with the shedding of tears but applauded so long as their pockets are lined with profits generated on the international level.