The markets became volatile, and the American economy's growth rate went down. Fed Chairman Alan Greenspan recently said the American economy had fallen to a zero growth level. But many market observers, and possibly President Bush as well, think the American economy will resume long term growth in the third quarter. If that's the case, America's negative trade balance will get even wider. But if American markets are jittery, in China, stock buying demand is massive.
Traders run out of stocks to sell and have to stop trading.
In Shenzhen, close to Hong Kong, they were traded in HK dollars and in Shanghai in U.S. dollars. Some weeks ago, the demand was so huge that the markets had to close earlier. When they opened with new stocks of stocks, starting prices were pegged at levels much higher than when the markets had closed. Yet despite the higher prices, the crowds were even greater. Huge water works investments are going to be made in all seven of China's major rivers.