Posted on 07/06/2015 10:50:57 AM PDT by SkyPilot
In 2011 the biggest fear from the Greek financial crisis was that it would cause a ripple effect throughout the global economy. But despite years given to de-leverage themselves, banks worldwide are still exposed to Greece, carrying more derivatives than ever tied to the tiny European state. Now that the Greek citizens have rejected the austerity measures proposed by the EU, we are facing a real potential of a Greek default, which could trigger a cascade collapse of credit default swaps and cause the implosion of the German central bank.
Then, a continent away, we are facing trouble of a different sort. To shore up its own financial status, the Chinese central bank has begun to pump billions into their markets to stabilize them. And market reports have begun censoring themselves to prevent market jitters. To add to this, we have China’s attempt at private banking just getting off the ground. And then there is the generalized self-deception that firmly believes that the rules don’t apply to China and it will grow forever without any restraint.
While the usual con men will use the Greek vote to hawk gold, the rest of the world is facing a collapsing marketplace this morning worldwide. That the Chinese index has lost over a third of its value in under three weeks should have been a large warning. Now in just a few hours of trading, a single market index has lost $30 billion in value, and the trend is accelerating. This adds to the issues, as it appears that many market analysts had counted on China bailing out Greece. But with China’s own financial situation in jeopardy, the white knight from Beijing is not going to be riding over the hill to save the creditors of Greece.
(Excerpt) Read more at addictinginfo.org ...
"The bankers ignored history, and used the bailout to fatten their own pockets at the expense of the people. As a result, fixes were not done, and even actively fought against. Now we are facing not a repeat of 2007, but a far worse situation. The banks have increased their risk, and gambled on governments bailing them out once more."
Related:
Good Luck Finding a Place to Hide as Global Markets Crumble
Aaemmm - margin call, gentleman...
Don’t you just love derivatives?
Right now the Dow is down 0.5%.
What are you trying to do here? Bombastic misleading headline.....
The markets aren’t crumbling....DOW barely down....Tokyo down a little, and China Crumbling? China is up for today, and WAY up for the year.
It may all crumble at some point....but to say that Greece is causing this right now? No.
Dow down half a percent. Big deal.
Never heard of “Addicting Info”. Must have had to look hard to find signs of panic.
Dow 17,635 -96 0.54%
Nasdaq 4,974 -35 0.70%
S&P 5002,063-14 0.66%
GlobalDow 2,491-32 1.27%
Gold 1,172+9 0.73%
We are all going to die.
But my Orange Juice Futures are safe, RIGHT? ;)
Wait a minute, how can China be “crumbling?” I thought they were booming by stealing all our manufacturing??????
I though OJ was doing time....
And who should step on-stage to offer solutions to the world problems?
The US markets are watching this like a drunk who woke up with an ugly girl and a bad hangover. They have to believe they will sober up and the woman will eventually leave, because there is no "Plan B."
Our own markets are hopelessly inflated, propped up by nothing but lies and thin air.
I’m still pretty glad I had never had any funds on deposit with a Greek bank....
Or is there something I didn’t know?
“That the Chinese index has lost over a third of its value in under three weeks should have been a large warning.”
Forget the Greeks, it is China that worries me. China and the US are the world’s largest economies now and their economies are massively interlocked by trade and investments. How can this NOT affect us, sooner or later?
This will be blamed on climate change. Not kidding.
“And who should step on-stage to offer solutions to the world problems?”
The Anti-Christ?
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