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- There is no way to stop China’s free fall Read more: http://www.businessinsider.com/there-is-no-way-to-stop-chinas-free-fall-2015-8#ixzz3jlNG2Rum
There is no way to stop China’s free fall Read more: http://www.businessinsider.com/there-is-no-way-to-stop-chinas-free-fall-2015-8#ixzz3jlNG2Rum
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Loading...Investors everywhere are looking for any reason to forecast a reversal in China's markets.
The world's second largest economy has led the globe in a no-holds-barred sell-off over the past few days.
The Shanghai Composite, already has erased all its gains for the year. This reflects a malaise in the wider, real economy. Chinese industrial data is flashing signs of danger the world hasn't seen since 2009.
The Chinese government is doing what it can to defend the yuan, which it devalued in response to anemic export numbers. We're already seeing that decision hit China's trading partners and competitors. Vietnam devalued its currency, the dong, last week.
The whole world is waiting for massive action from the Chinese government — a bazooka that can blast through all this market madness.
The problem is that it doesn't have one.
That's because China's growth model is broken, and it can't be fixed by cash injections or other emergency policy measures.
The old fixes won't work anymore.
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