Everybody listens to Greenspan, except China
TEXT OF STORYBOB MOON: The shockwaves are still rippling around the world from the comments made yesterday by former Fed chief Alan Greenspan.
He voiced worries that China’s red-hot stock market faces a steep fall. Wall Street investors registered their concern over those comments yesterday and today, European shares fell from their six-and-a-half year highs.
The Shanghai Composite Index did shave off a modest half-a-percent today, but that’s nothing compared to a 55 percent jump so far this year — not to mention its 278 percent climb in the past two years.
In China, they listen not to Greenspan, but a man by the name of Lin Yuan. He’s considered a Warren Buffett-style market guru over there and he told Reuters today that the Chinese stock market will keep on rising.
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