An interview conducted by The 21st Century Business Herald with Wang Zili, the President of the Training Institute under the People’s Bank of China, discusses the implications of the US credit crisis. The Beijing Review reports:
While many believe that the US Financial Crisis has peaked, Wang feels the US economy is essential “stuck” because its credit is drying up. He believes that if more global capital leaves the US market to “stave off further losses,” then the US financial system may reach its lowest depression since the founding of the country.
Wang feels that emerging markets, like China’s, need to carefully watch their domestic housing and securities markets, because emerging economies are “more prone to financial instability due to patchy regulations of their financial sectors.”
Although Wang feels that China’s financial regulatory system will be able to handle this credit crisis, he also mentions that the country’s positive growth has come with unsustainable heavy pollution and resource depletion.