Greece And China: Risks Continue To Simmer

Greece and China: Risks Continue to Simmer by Brad McMillan, Commonwealth Financial Network

Last week's strong employment report settled what I saw as the major short-term risk here in the U.S. Meanwhile, the biggest international risks—Greece and China—continue to make headlines, but the pot isn’t boiling over yet.

China cuts interest rates again

For the third time in six months, China is cutting interest rates in an attempt to revive its economy, reflecting a heightened level of concern that growth just isn’t coming back.

By cutting interest rates, China hopes to spur more borrowing in order to drive economic growth. This strategy has worked in the past, as you can see below. More credit has been steered toward more investment. Now, however, China...