Signs, Long Unheeded, Now Point to Risks in U.S. Economy – LANDON THOMAS Jr., NYT

“What was driving weakness in all these countries was the gradual slowdown in the Chinese economy. As China bought less steel from Brazil, iron ore from Australia (its stock market was down by 22 percent during this time frame) and less mineral fuel and oil from Indonesia, the effect on these economies was immediate.

When it comes to warning indicators from China, there are many from which to choose. One is that, according to their 2014 balance sheets, four out of five of the world’s largest banks are Chinese. Or one could choose the Chinese debt ratio, which McKinsey & Company has estimated to be over 280 percent of the country’s total economic output.”

via Signs, Long Unheeded, Now Point to Risks in U.S. Economy – The New York Times.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s