Will a collapse in the Chinese market lead to a worldwide fiscal catastrophy?
Beginning with the US since they hold 500 billion in US currency and bonds? I heard on the radio that the Chinese market is pretty unstable due to Day Trading (in this case, gambling) by Chinese with no financial concepts.
It would most definitely cripple the world economy because of various free trade agreements which directly affect markets throughout the world, in particular, the United States. We voted to allow China to the lofty position of “most favored trade” partner so it would have a huge impact on worldwide investments. China’s markets are expanding, along side that of India, at rates that will make it one of the two strongest and most influencial economies by the year 2015. China has also made major investments in the US economy, and could affect ours in a negative way if they chose to do so.