Skip to comments.The really worrying financial crisis is happening in China, not Greece
Posted on 07/08/2015 5:31:17 AM PDT by Enlightened1
China looks like it is heading for its version of the 1929 stock market crash
While all Western eyes remain firmly focused on Greece, a potentially much more significant financial crisis is developing on the other side of world. In some quarters, its already being called Chinas 1929 the year of the most infamous stock market crash in history and the start of the economic catastrophe of the Great Depression.
In any normal summer, a 30pc fall in the Chinese stock market a loss of value roughly equivalent to the UKs entire economic output last year after an ascent which had seen share prices more than double within the space of a year would have been front page news across the globe.
The dramatic series of government interventions to stem the panic hitherto unsuccessful, it should be added would similarly have been up there at the top of the news agenda. Yet the pantomime of the Greek debt talks, together with the tragi-comedy of will they, wont they leave the euro, has relegated the story to little more than a footnote - even though 940 companies, more than a third, have now suspended trading on Chinas two main indices.
(Excerpt) Read more at telegraph.co.uk ...
China sits on the granddaddy of all real estate bubbles. The communist controlled central bank directed the squandering of $2 trillion of capital into the building of needless “ghost cities” that sit empty, decaying and no return on investment. Their real estate is artificially and unrealistically valued. Their loans and banking are based on artificially high real estate values. A small decline in real economic output and the whole system tumbles. Remember 2008. The US as a political result got Obama. The world should really shudder for what will happen in China.
I don’t have much to back this up, however word on the beaten path is many Chinese outside of the great firewall are hiding their wealth in LTC and BTC. Since last week, LTC has doubled in price and volumes of trades/purchases are fairly high. LTC is somewhat a gamble however BTC has been pretty flat for two weeks so it would be a good method of moving wealth quietly.
I am not advocating buying into crypto at all. I have some crypto that I can live with or without and plan on seeing where it is in five years as a personal experiment is all. Other’s day trade crypto or move their money around the globe without being tracked.
You’re exactly correct.
I’ve seen these ghost cities and malls with my own eyes.
I also saw, just a few short months ago, 30 year old engineers giggling and laughing and looking at their phones in the middle of a business meeting. I learned afterward, they were tracking their stocks... all day, every day. EVERYONE with two nickels to rub together, was investing it into the stock market. They all saw it as a quick way to “easy money”. I shuddered when I remembered the way I invested in the early 80’s.
China is new to this “freedom gig”. They’re excesses put our previous meager efforts to shame. This is going to be one large group of VERY unhappy people when it collapses... and, that sure looks to be what it happening.
Yeah, I'm REALLY worried about what happens to China.
Isn't $2 Trillion an extremely conservative estimate?
That’s what I have been hearing too.
If China goes down, then it will affect all markets and possibly lead to World War.
Hopefully, it will never come to that.
Well, thankfully we're continuing to draw down our military - so there's that. /sarc
Communist Stock Market is an oxymoron.
CHINA melting down towards the biggest stock market crash since the Great Depression and will drag us all down with it.
The waste of commodities and resources alone to build these cities is staggering.
How/why is that? I would think China melting down would boost our economy.
You should be. Greece is a farce, with no recourse other than to drink more ouzo and snivel a little more. The only long-standing grudge they have is against Turkey and they have not really cared about that one for 40 years.
China OTH manufactures a lot of the consumer goods we buy weekly, holds hundreds of billions of Treasury Bonds which they could unload quickly if they need liquidity (which they will soon), and has a large population of single men that are of military age. Their hardware is not comparable to ours, but at a certain point, quantity acquires a quality all its own.
And let’s not forget the grudges... Japan, Taiwan, us, Russia, Vietnam, India; all are looked upon with varying degrees of hostility, dislike, and contempt by China.
So what does a country with a chip on its shoulder, a lot of young unmarried men, and a lot of hardware do when those young men don’t have jobs, Jim?
So, we should continue our insane, self-destructive engagement with China to prevent something worse?
China collapse equal boon to our economy.
I though they were building the cities before forcing a lot of illegal migrants to the cities into the new cities, instead of those on the coast.
Yeah, yeah, China’s economy might collapse with worldwide effects, but what’s really important right now - for the American media and American public - is creating more transgender restrooms in this country and banning the Confederate flag.
Yes, and China has been very agressive toward neighbouring states over the last 2 years. One can see things building up.
There is also the mystery of the disappearance of that Malaysian plane, which was en route to Peking. There is some story to that, which we are not being told. Probably we might die of fright if we heard it.
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