CHINA AND WILE E. COYOTE
While all Western eyes remain firmly focused on Greece, a potentially much more significant financial crisis is developing on the other side of world.
In some quarters, it’s already being called China’s 1929 – the year of the most infamous stock market crash in history and the start of the economic catastrophe of the Great Depression.
In the past three weeks, the Chinese stock market has lost $3 trillion, while Beijing’s interventions to stem the panic have been unsuccessful.
Yet the pantomime of the Greek debt talks, together with the tragi-comedy of will they/won’t they leave the euro, has relegated the story to little more than a footnote - even though 1,400 companies, some 40%, have now suspended trading on China’s two main indices.
The parallels with 1929 are, on the face of it, uncanny. As are those with Wile E. Coyote.