MoneyWeek, 14 Nov 2008, Eoin Gleeson
Why the excitement about this deal?
World markets rallied briefly earlier this week as China announced a plan to plough $586bn into its faltering economy over the next two years. Investors excitedly drew comparisons to Franklin Roosevelt's New Deal in 1929, which many argue shored up the US economy after the Wall Street Crash. The hope of the bulls was that – having stood on the sidelines for much of the crisis so far – China, with nearly $2trn in foreign exchange reserves and a sovereign wealth fund with $200bn at its disposal, was moving to prop up the world economy just as it is keeling over.
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