May 30 (Bloomberg) -- Even if former Federal Reserve Chairman Alan Greenspan is right, the ``dramatic contraction'' he predicts for Chinese stocks isn't likely to infect the international economy.
That's the conclusion of a number of international economists and former government officials around the globe. They say China's economy shows little correlation with its stock market, and the fact that foreigners are mostly excluded from owning shares -- even Chinese participation is limited to less than 10 percent of the population -- means the effects of a bursting of the bubble would remain contained.
``This is a relatively small casino,'' said Edwin Truman, a former director of the Federal Reserve's international finance division and now a senior fellow at the Peterson Institute for International Economics in Washington. ``Even the implications for the Chinese economy should be minor.''
We are going to find out soon enough. NQ at 1899.50 support as I type. YM at 13500. ES 20 dma at 1515 will be critical as well.
That's the conclusion of a number of international economists and former government officials around the globe. They say China's economy shows little correlation with its stock market, and the fact that foreigners are mostly excluded from owning shares -- even Chinese participation is limited to less than 10 percent of the population -- means the effects of a bursting of the bubble would remain contained.
``This is a relatively small casino,'' said Edwin Truman, a former director of the Federal Reserve's international finance division and now a senior fellow at the Peterson Institute for International Economics in Washington. ``Even the implications for the Chinese economy should be minor.''
We are going to find out soon enough. NQ at 1899.50 support as I type. YM at 13500. ES 20 dma at 1515 will be critical as well.
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