I Guess Lardy Was Right.

I’m not an economist but I do understand that this week saw a plunge in stocks world wide, and of course there are those who would like to know why this occurred. Well and article posted on Bloomberg’s website, Asian Stocks Add to Global Rout After China’s Slump; BHP Drops, at least puts some of the blame on China. The article claims that China’s government has taken measures to stop illegal purchase of stocks, to stop banks from loaning money to those who wish to buy stocks, and has called for banks to call in outstanding loans. Lardy predicted a similar event to occur in the article that I commented on in my last blog. In his article his said that the Chinese government should have taken the above measures years ago or else a plunge in the market world market would happen. So I guess Lardy was right.

~ by palps88 on March 3, 2007.

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