China's Market Collapse Could Save You Money
China's stock market has lost 30 percent of its value in the past three weeks, and until a rally late last week, $3 trillion of wealth was wiped out on THE STOCK MARKET. The meltdown had a muted impact on U.S. stock markets, but there could be a lasting impact beyond stocks if China's markets don't recover.
The reason comes down to why investors are worried about China in the first place. The central government controls a lot of the banking industry in China, choosing where and when investments happen. But that strategy is prone to mistakes, like overinvestment and choosing the wrong industries to finance. For years there's been worry that China is due for a correction, and last week's events could reveal some signs of where China's problems are rearing their ugly heads. Ironically, the results could actually be good for Americans' pocketbooks.
Here are three ways in which China's economy could impact your wallet, even half a world away.
Driving the World's Energy Prices
The collapse in energy prices over the past year has been blamed primarily on OPEC. But actually, it's worry that China's economy was slowing that sent energy markets into a frenzy.
