10-06-2008, 05:46 AM
<b>Is the sun setting on US economic supremacy?</b>
By Ding Yifan (China Daily)
Updated: 2008-09-26 07:49
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->This is not the first time foreign investors have suffered enormous losses from a financial crisis in the US. Japan was the largest victim of the bursting of the US real estate bubble in the 1980s. It is estimated that by the early 1990s, Japan had suffered losses of around $70 billion, equivalent to its trade surplus with the US during the 1980s. The East Asian nation then fell into a 10-year economic recession.
It would be impossible for developing countries intent on absorbing US capital not to be affected by the economic crisis engulfing that country. For instance, a number of US corporations based in India are facing serious fund shortages, prompting them to withdraw capital from the Indian market, and resulting in a steep decline in the Indian stock market.<!--QuoteEnd--><!--QuoteEEnd-->
By Ding Yifan (China Daily)
Updated: 2008-09-26 07:49
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->This is not the first time foreign investors have suffered enormous losses from a financial crisis in the US. Japan was the largest victim of the bursting of the US real estate bubble in the 1980s. It is estimated that by the early 1990s, Japan had suffered losses of around $70 billion, equivalent to its trade surplus with the US during the 1980s. The East Asian nation then fell into a 10-year economic recession.
It would be impossible for developing countries intent on absorbing US capital not to be affected by the economic crisis engulfing that country. For instance, a number of US corporations based in India are facing serious fund shortages, prompting them to withdraw capital from the Indian market, and resulting in a steep decline in the Indian stock market.<!--QuoteEnd--><!--QuoteEEnd-->