The recent series of downturns in Asia’s financial markets could be creating more economic hard luck stories here in California.
As if California didn’t have enough to worry about with the slide on Wall Street…there are now mounting fears about the stability of markets in Pacific Rim nations. Japan’s markets have taken a big tumble and exchanges in Indonesia have tanked. Sebastian Teunissen teaches global trade at U-C Berkeley. He says Asian businesses can’t borrow money easily right now…and that’s disrupting the flow of trade with California…
“They may not be producing either and you may find the flow of good to the U-S may be proportionately decreased as well. On the other hand…we too are buying less…”
Last year, California sold more than 55-billion dollars worth of goods to overseas Asian-Pacific partners—mostly computers and fruits and vegetables. Japan, China and South Korea are most active.