Comments on: China stock market crisis

By: Frog

Frog — Thu, 09 Jul 2015 19:33:29 +0000

Who was it that said, “If all the economists in the world were laid end to end, they wouldn’t reach a conclusion.?

By: Ymarsakar

Ymarsakar — Thu, 09 Jul 2015 16:45:07 +0000

The Chinese like to blame their problems on the Japanese, due to WWII and Mao’s insurgency methods which promoted Japanese colonialism so that Mao’s civil war foes would bleed themselves dry fighting for Chinese nationalism, then Mao took over after the civil war factions were worn out since Mao preserved his forces by refusing to fight the Japanese.

The Chinese also like to blame Americans, but America is still pretty strong, so they don’t tend to do that as much unless we speak of the leadership.

It’s similar to how Southern Democrats were brainwashed into blaming Lincoln and Sherman for the war.

By: Sergey

Sergey — Thu, 09 Jul 2015 12:54:12 +0000

In so corrupt country as China all money deals are utterly murky, nobody really knows who owns what. Market participants are in panic mode, politicians and regulators are too. The end results in such situation are completely unpredictable like decisions of panic-stricken people dealing in abscence of veritable information on the basis of hearsay.

By: Tonawanda

Tonawanda — Thu, 09 Jul 2015 11:25:21 +0000

Read yesterday (do not have link) that the Chinese government had their (apparently centrally controlled) pension system throw a huge pile of cash at the market to shore it up.

That money evaporated immediately to the detriment of pensioners.

Greek banks (according to Rush) are rummaging through safe deposit boxes in search of cash, leaving IOU’s (Rush noted the double key thing; how would the boxes be opened? Still, I would not be surprised).

Zurich is too far away. But there must be a safe place to hide my growing hoard of canned chili.

By: G Joubert

G Joubert — Wed, 08 Jul 2015 23:28:42 +0000

We've never been able to definitively explain the hows, whys, and wherefores of the business cycle as it applies to our own market-based western economies, let alone China's, such as it is. Solution-wise Adam Smith would argue for a governmental hands off "laissez faire" approach, but that's never going to happen, not here, and not in China.

By: Frog

Frog — Wed, 08 Jul 2015 23:07:46 +0000

Sorry, link didn’t work.Try
http://www.tradingeconomics.com/charts/china-stock-market.png?s=ssecomposite&d1=20060101&d2=20151231

By: Frog

Frog — Wed, 08 Jul 2015 23:06:31 +0000

See the chart of the Shanghai Composite Market Index 2006-2015 to see what Beijing is trying to control. An incredible run-up followed by an incredible run-down. Not the first time, either.
I don’t know what geopolitical implications this has, but they are certain to be 1) Bad, and 2) Extensively felt. We are not at all safe from this literal financial tsunami.

By: parker

parker — Wed, 08 Jul 2015 22:02:44 +0000

Since the late 80s easy credit has created one bubble after another. The popping of these bubbles grows more severe as each bursts in turn. Globally we are on the cusp of a bubble that will be even larger than 1929. Its everywhere in every market around the world. Government – bankster manufactured bubbles present a suicidal dilemma of creating hyperinflation or acquiescing to the equally painful alternative of steep deflation.

Let the hunger games begin and may the odds be in your favor.

By: G6loq

G6loq — Wed, 08 Jul 2015 19:29:52 +0000

Ymarsakar Says: July 8th, 2015 at 2:16 pm Folks are getting nervous. Having money in the US means the US government has you as their money bag they will squeeze until blood comes from the rocks: US Mint Announces Caitlyn Jenner Commemorative Gold Coin. Discuss?

By: Dennis

Dennis — Wed, 08 Jul 2015 18:43:05 +0000

Corrections of stock markets are to be expected when the market has been rising as rapidly as the Chinese Markets. The Shanghai Composite Index now stands at 3507.19. At the beginning of the year, January 5, 2015 it was at 3,350,52 so it is still up about 4% this year. This chart should put things into perspective.

http://fortune.com/2015/06/29/china-stock-market-volatility/