The Chinese mix of frugality and risk-taking is driving global stock markets wild

[LuckyTheDog]

A byproduct of this transition into a more mature economy is slower growth. Typically, as a nation progresses from poor to middle-income – and from basic needs and manufacturing toward a service economy that includes more creativity and intellectual assets – growth rates naturally slow down for reasons economists do not fully fathom.

But what’s really behind all this angst, the booms and the busts? And are investors and traders right to be increasingly concerned about a global recession?

A longer-term view suggests the fears are misplaced: the world economy will actually benefit from a successful transition in China, despite a few bumps along the way.

And as for the cause, it helps to examine Chinese culture and history. A heady brew of frugality, wild risk-taking and amateurism has created huge bubbles – ones that were bound to deflate.

MORE HERE: http://yonside.com/the-chinese-mix-of-frugality-and-risk-taking-is-driving-global-stock-markets-wild/