Most media coverage has portrayed China as the center of new stock market difficulties, but a recent analysis at Counterpunch says otherwise.
An op-ed authored by Mike Whitney and published on 24 August explained that the economic woes haunting the stock market as a systemic problem with the world economy. The cliched reaction of seeing this as an exclusively Chinese-caused problem only diverts attention away from the fragile situation of western economies, Whitney implied. From his conclusion:
Whether the troubles started with China or the credit markets, probably doesn’t matter. What matters is that the system about to be put-to-the-test once again because the appropriate safeguards haven’t been put in place, because bubbles are unwinding, and because the policymakers who were supposed to monitor and regulate the system decided that they were more interested in shifting wealth to their voracious colleagues on Wall Street than building a strong foundation for a healthy economy. That’s why a simple correction could turn into something much worse.Whitney believes that what is being dismissed a temporary hiccup on the stock market and an exclusively Chinese problem is the start of something more like the 2008 financial crisis. At the heart of it all, he sees a system of greed, fraud and debt-shifting based at Wall Street as the offender, rather than China or its Central Bank.