Monday, October 27, 2008

China's Economic Turmoil Could Lead to Political Unrest

[Chairman Mao]

the NY Times --
The results were the same in markets across Asia.

Hong Kong stocks crumbled, closing down 12.7 percent as investors unloaded billions of dollars worth of shares of banking and finance companies. Banking giant HSBC was down almost 15 percent after falling 12 percent on Friday. The operator of Hong Kong's bourse, Hong Kong Exchanges & Clearing, plunged almost 14 percent.

Stocks in China fell about 6 percent, with the Shanghai Composite Index slipping to the lowest level in more than two years. The index has fallen backward by about 72 percent from its peak last year.

The Industrial & Commercial Bank of China dropped 11 percent. The bank, the mainland's biggest lender, announced larger-than-expected losses Friday, raising new worries about how long China will be able to sustain its economy amid the global financial turmoil. China's government took additional steps on Monday to try to ensure the stable operation of its economy. The People's Bank of China, the country's central bank, said it would deposit the equivalent of about $4.4 billion with commercial lenders for loans.

The downward spiral of capitalism in China raises fears the Communists could seize power there. No, wait. The Communists are already in power. Maybe if the Communists were in power in the United States this wouldn't be happening here either.

[Sarcasm too veiled? How about -- This crisis isn't about which party is in power. It's about capitalism.]

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