International Turmoil… China Greece
Summer financial headlines have been dominated by foreign financial markets. As we enter the month of August, Greece has begun to fade from the headlines while China rises to the top.
Segment one of this program I spend time talking about Greece and its recent financial crisis. Despite the dire headlines, Greece is a very small country measured by its financial markets and its economy.
China is the focus for segments two and three. This country is very large and its economy is one of the largest in the world. What happens in China is meaningful compared to Greece.
However, because of its communist system the Chinese stock market is very small relative to its population and its economy. Because of the severe restrictions on foreign ownership, the Chinese stock market is not very well developed and is prone to market manipulations. In recent years, the Chinese government has done much to prop up the stock market as its economy goes through transition.
Finally in segment four, I discuss the recent 4×6 index card of financial advice provided by University of Chicago professor Harold Pollack. The professor thinks that simplicity is the way to go.