In The News

China’s Market Rout Is a Double Threat

Keith Bradsher and Chris Buckley July 10, 2015
China’s stock markets have bounced back, but the strong of losses may have dented investor confidence in the government’s ability to control those markets. The abrupt loss of Chinese shares’ value over the course of a few weeks, equal to six times Greece’s foreign debt, and a general downturn in the economy poses a threat to the global economy, report Keith Bradsher and Chris Buckley for the New...

Government Had No Reason to Intervene in Stock Market Turbulence

Ling Huawei July 7, 2015
Interventions tried by the Chinese government to curb sharp declines in the country's stock markets are drawing unusually pointed criticism from analysts. “The bottom line is this: Only a systemic risk that threatens financial stability justifies a government bailout,” notes Ling Huawei for Caixin Online. “And the intervention raises a thorny question: Who takes the blame if the securities...

Greece – A Mess With Consequences

David Dapice July 7, 2015
Greek voters have soundly rejected a set of reforms from the European Central Bank, the European Commission and the International Monetary Fund. The “no” vote may mark the beginning of Greece’s exit from the eurozone, and the uncertainty of what happens next comes at a bad time for the global economy, warns economist David Dapice. Economists can only speculate about the possible political and...

If Greece Defaults, Imagine Argentina, But Much Worse

James B. Stewart June 26, 2015
The best option for Greece is conceding on Europe’s demands for austerity, argues James B. Stewart for the New York Times, to avoid the economic havoc of Argentina, which has defaulted on debt multiple times. A Greek default would be worse than Argentina’s. Greece could expect a run on banks of a much higher magnitude and confusion over currency with a steep drop in purchasing power. Argentina’s...

Why It’s So Hard to Predict the Impact of a Greek Default

Alex Rosenberg June 19, 2015
Greece owes more than €240 billion and may default – and may even withdraw from the European Union – if creditors including the EU, especially Germany, and the International Monetary Fund do not provide another bailout. Greek debt is about a third to half that of the US subprime mortgage debt before the global debt crisis struck in 2007. Consequences for the global economy are unknown, but...

China Is Building the Most Extensive Global Commercial Military Empire in History

Steve LeVine June 9, 2015
Great nations invest in innovations and infrastructure, and societies in decline allow those investments to crumble. “China views almost no place as uncontested,” writes Steve LeVine for Quartz, about the nation’s strategy to project power and influence. “Chinese-financed and -built dams, roads, railroads, natural gas pipelines, ports, and airports are either in place or will be from Samoa to Rio...

American Universities "Addicted to Chinese Students”

Matt Schiavenza June 1, 2015
About 3 percent of Chinese students attending US colleges and universities may have been expelled during the 2013-2014 academic year, most for failing classes or cheating; more than 270,000 students from China enrolled in US institutions that year. “Over 60 percent of Chinese students cover the full cost of an American university education themselves, effectively subsidizing the education of...