… AND WHY YOU SHOULD CARE
|| By FITSNEWS || While the world has been focused on the financial turmoil in Greece – and the threat it poses to the European economy – a much bigger economic collapse is in the offing in China.
In less than a month, the Shanghai Composite – China’s largest stock market – has plunged by 32 percent. Meanwhile the tech-heavy Shenzhen market has lost 41 percent of its value. All told? An estimated $3.25 trillion in value has vanished.
“At the moment there is a mood of panic in the market and a large increase in irrational dumping of shares, causing a strain of liquidity in the stock market,” China’s central market regulatory agency said this week.
Ya think?
“In some quarters, it’s already being called China’s 1929 – the year of the most infamous stock market crash in history and the start of the economic catastrophe of the Great Depression,” Jeremy Warner wrote for The (U.K.) Telegraph.
“The parallels with 1929 are, on the face of it, uncanny,” Warner added. “After more than a decade of frantic growth, extraordinary wealth creation and excess, both economies – America in 1929 and China today – are at roughly similar stages of economic development. Both these booms, moreover, are in part explained by extremely rapid credit growth. Indeed, China’s credit boom dwarfs that of even the ‘roaring Twenties.’ Borrowed money, or margin investing, played a major role in both these outbreaks of speculative excess.”
So … why should you care if China’s economy enters a downturn?
Easy: China has been driving global economic growth of late, meaning a slowdown in its economy would have significant ripple effects on our own.
After growing by more than 10 percent a year during the three decades leading up to 2010, China’s growth stood at 7.4 percent last year and projections for 2015 (6.8 percent) and 2016 (6.3 percent) were slipping even before the country’s crisis hit.
Now those projections are likely to be downgraded further … meaning America and Europe will feel an even greater drain on their economic output as Chinese demand plunges.
18 comments
How much did Japan’s crash affect us?
Economic downturn in China means cheaper toxic, flimsy, plastic, mass-produced shit over here.
OH SHIT!!!!!! If anyone has stock in Wal Mart, I have two words. SELL NAO!!!!!!!!!
Thumper called this one earlier. Good call Thumper.
They are still talking about an economic crisis. There is also a political crisis and China may respond with a crackdown or less likely real reform.
All propaganda… Gruberment, pump-n-dump brokers are all bailing on U.S. markets and EuroTrash markets.
Cash is King for the next two months, at least. Gruberment is manipulating Gold/Silver markets to prop up The Dollar.
The question is, will this turn US growth downward or will all that fleeing chinese capital come to the US markets looking for safety?
All markets are lagging indicators of g’ment inefficiencies. Taxes go up with no increase in services, then markets go down.
There is no investment safety in an economy where taxes are increasing.
All inflation is caused by government, government prints the money and government can too easily print too much. Inflation is the cruelest tax of all.
Irrational exuberance.
Not!
U.S. markets down 20% by end of August. EuroTrash markets down 30%. China seeking new markets. U.S. and EU seeking higher taxes … duh!
China is putting stops on wild market trades. Japan bailing out their own. U.S. Gruberment buying Gold/Silver.
Cash is King for the next few months.
Wait until they find out what that cookie jar of IOUs from the US is worth.
87$/hour I looked at the draft which said $9958@mk1
>z
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I blame that damn Confederate flag. Are they going to wait for the whole world to collapse before they take it down? If they had taken it down last week, this wouldn’t have happened.
Don’t worry, those Chinese investments in SC’s coast are bound to pay off!
Coincidentally, they will be upgrading the suicide nets on their major buildings to support a greater amount of bodies.
There is suspicion that the recent Chinese investments on the Grand Strand is a manifestation of capital flight from China before a crackdown.
Stock market is a Ponzi scheme. China will raise the price on everything they sell to the USA as a mean offset. This, of course, will put further strains on the US economy and cause people to cut back. But everything is only a temporary thing anyways. Aside from all of that, hold on to your hats. In a few weeks, the shit really hits the fan. The greedy elites have suck and suck and suck till there is almost nothing left to suck. And the USA has all of these 3rd world nation welfare seeking illegal immigrant to babysit and feed with tens of thousands more to feed. Better stock up on can goods. When the Great Depression hit the USA, it hit pretty quick.
Public Pension plans across the country are heavily invested in China. I don’t know about SC, but lots of plans are participating in the mega-losses.
The hubris at play in the financial markets is beyond belief. If the whole damn thing crashed tomorrow I would not be surprised.
N.Y. Stock Exchange Shuts Down.