China Syndrome, The Liquidity Crisis That Erupted From Massive Negative Shocks And What To Expect Next
KingWorldNews.com
Sept. 22, 2015
With the world waiting to see what is next for China after their recent stock market crash, today King World News is featuring a piece from a firm that helps to oversee $175 billion, which discusses China Syndrome, and the liquidity crisis that erupted from massive negative shocks.
“What is a systemic crisis? It is a liquidity crunch that erupts and spreads when very large negative shocks hit the economic grid, throwing normally well-functioning enterprises into distress.” — Jason Hsu, Co-founder of Research Affiliates
By Jason Hsu, Co-founder of Research Affiliates
September 22 (King World News) – China Syndrome – The Chinese stock market rallied more than 150% as the Shanghai Composite Index rose from 2,037 at the end of June 2014 to its peak of 5,166 in June 2015. Many market commentators, most notably Bill Gross, called it a “stock market bubble” and predicted a collapse. However, it bears asking, “What is a stock market bubble and how is it different from just a run-of-the-mill bull market?”
The Rest…HERE
