Monday, October 06, 2008

China Mostly Immune to Global Financial Crisis

For the past few weeks, I've been engrossed with the current US election. As a person who has volunteered for campaigns, canvassed in low income neighborhoods and helped register people to vote in the US, it has been an interesting election season so far.

The main issue this year has been the economy and the current financial crisis affecting the world. As a friend who works for McKinsey Consulting told me more than a year ago... "it'll be really really bad. Just wait, Mike." I guess he was right. Another one of my friends who used to work for Lehman in Hong Kong is looking for a new job.

(Yep, the Dow Jones just went under 10,000. This is getting even more crazy.)

What's great news in China is that the main Chinese banks are largely unaffected by the crisis plaguing the rest of the world. It seems that Chinese leaders didn't really understand financial derivatives back a few years ago. Since they didn't understand them, they didn't invest in them. This act of conservative and cautious investing has greatly benefited the Chinese economy. Even though the Chinese stock market has taken a hit - as have just about everyone, the "robust" Chinese economy is said to be able to muscle through while the rest of the world struggles. - CNN.

I guess I'll just have to put my Bschool plans on hold and stay in China for a little longer. It's really the only place where there are jobs.

No comments: