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jebblue | 10 years ago

I wonder if any of this could be related to recent tensions in Korea?

http://www.cnn.com/2015/08/21/asia/koreas-tensions/

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photosinensis|10 years ago

No. This is mostly about a bubble in China popping. Potemkin buildings have been a thing there for a very long time due to a series of perverse effects of policies by the Chinese government.

The Korea business is pretty much business as usual there.

The good news for the US is that we're a Chinese consumer, and they're not a major customer for our goods. Additionally, they're a competing consumer for resources. Basically, this means that the prices for American imports will drop, making the USD stronger internationally and encouraging international investment in the US economy.

The one thing to worry about is that the drop in import prices will likely cause a drop in the prices of domestic goods.