http://money.cnn.com/2012/04/13/markets/stocks/index.htm?iid=HP_LN
This week was the worst for stock growth in 2012. The NASDAQ dropped 2.3%. The Dow dropped 1.6%. S&P 500 dropped 2%. The reasons behind the drop in prices include a poor March jobs report and the slowing of China's economy in the first quarter this year. China's shrink in growth is not a concern to economists at World Bank, who claim 2012 will be a down year for China but 2013 promises to be much better.
China optimists point to China's easing of old monetary policies for hope in the future. China pessimists point to a growing housing bubble that could burst like the bubbles in the US and Europe.
The article indirectly deals with what we've been talking about in class. China (the optimists hope) will experience more growth by changing away from old socialist monetary policies. We have a clear cut example of China still being in a transition phase from Socialism to Capitalism.
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