The recent Crash of 2 high speed trains in China is not only a reminder of the danger of building a high-speed railway network in high speed without proper management, but also a reflection of vulnerable situation of Chinese economy and the corresponding political system.
One of the lessons learned from the crash is that when the speed is close to the limit, it’s dangerous. In addition, paying the high price for that kind of speed is also not worth it. Having learned the lesson, the Chinese government adjusted the speed limit of the high-speed train and the corresponding prices lower. However, many investors or speculators of the stock market in China don’t seem to learn the same reasoning behind.Continue reading “High Speed Crash”