A China-Taiwan war could trigger stock market crash, Alan Greenspan says

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A war between China and Taiwan is the economic 'black swan' investors should be most worried about, ex-Fed chair Alan Greenspan warns

Investors should start worrying more about China – because it could invade Taiwan and trigger a global economic crisis that fuels major market sell-offs, Alan Greenspan has warned.

Black swans are unpredictable events – such as the 2008 financial crisis or Russia's invasion of Ukraine last year – that end up having unexpected and severe consequences for stocks and other financial asset classes. President Xi tightened his grip on power last year when he secured a third consecutive five-year term as Chinese leader.

An attack on Taiwan would rock the global economy because of the island's importance to the global semiconductor trade, Greenspan said.is the world's largest independent chipmaker and the 15th-largest stock by market capitalization, with a total valuation of just under $400 billion.

 

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Greenspan who didn’t know about 2008 crisis! Funny he is still talking about finance

That's by the definition is not 'black swan' event. You can not label something in advance as 'black swan', especially if it's highly probable (and conflict between China and Taiwan is everything but not improbable)

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