China Econ Update – Small Sigh of Relief

2009-07-30

Yesterday's big news was that the stock market tanked and the government announced tighter lending.

This made me happy.

No, I'm not one of those people sitting around waiting for an economic disaster so I can sit back and watch the lovely chaos that ensues (e.g. the end of Fight Club). Actually, I'm glad that the stock market came down and lending was reined in for very logical reasons: everyone knew that we had some serious bubbles in the economy and that letting some air out sooner rather than later was a good idea.

But I didn't write about it yesterday, for two reasons: first, because I was busy writing something else; and second, because I wanted to wait on additional guidance/reaction from the government, which I now have in my hot little hands, or rather Inbox.

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