Bearish Video

Well, considering the links given earlier in this thread, it was mentioned that China is not going to be able to help the crash like it did in the dot com bubble case.

So, does that mean that China is a bigger power than Japan?
 
Quote from eusdaiki:

Consumption in the US has been the leading factor in the world's aggregated demand for many years. Today most countries export a big % of their production to the US.

If consumer spending in the US goes down, then you can expect exports to decline all over the world. Basically there's too much risk taken on the assumption that the US will do well.

If problems arise in the US economy, and consumer spending slows for an extended period of time. The nations that depend on US exports will go into an economic slowdown along with the US at first, but as they diversify their exports [basically looking for new markets] they might be able to accelerate their economies again or at least mitigate the effects of the US slowdown.

many of these countries are already attempting to diversify their exports, to other world powers like Europe, Japan, China, etc... but it's a slow process.
More...

Thanks, eusdaiki for the wonderful answer. :)
 
Quote from JaiSreeram:

Already there are rounds that US economy is going into recession, even Bush has admitted it. Recently, when US stocks crashed, the whole world was affected. But why?

Why does the US economy has so much effect on other countries economies, despite the fact that Japan is also a leading economy?

Can someone please clarify as to how different markets affect each other and why?
More...

A good question, JaiSreeram; when different markets interact with each other, their study is known as “Inter-market Analysis”. Please have a look at the following thread:

Intermarket Analysis
 
Quote from Gyles:
A good question, JaiSreeram; when different markets interact with each other, their study is known as “Inter-market Analysis”. Please have a look at the following thread:
Intermarket Analysis
More...

Thanks Gyles, for the answer, learned a lot from the thread you referred to.
 
You must log in or register to reply here.
Back
Top