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 ...
Should I bring in my tomato plants?
If they'd done that, they'd be able to pay their debts and stay in the EU.
Instead, they'll suffer thru months of turbulence, crush their economy and end up paying their government employees and retirees much less, because they'll be paying in drachmas.
Instead of a 10% cut and stability and the possibility of growth, they'll get 20% cuts, or more, instability and recession.
wheres Beeks?
how did Winthorp get here!!!
Thank you.
And China’s problems don’t have much, if anything, to do with Greece [and have been known for a long time.]
“Forget him (PG version).........Turn those machines back on......Turn those machines back oooooonnnnnnnnnnnnnn!!!!!!”
Greece: Socialist satellite of socialist EU.
Scraps to go around: Not enough.
China: Centrally planned economy booms, now declining.
3/4 of the country was lucky to get a bowl of rice a day during the boom.
Situation: Normal.
Don’t really see where they get that the Chinese market is collapsing from, I understand it is having problems that they are taking steps on new issues and that it has been going down, had gone way up though. Know the Shanghai has been moving more than the Hang Seng.
Do you have a link for this developed markets chart, that is a very informative chart though very scary looking, amazingly so.
They'd get even more debt when they can't pay the debt they already have. Debt is slavery. How many other countries would vote the same way if given the chance?
What would happen if US citizens could vote to abolish the Federal Reserve Bank? I'd wager a vote to do so would be very popular.
It's time for the Morlocks to head for the hills!
I’ve been reading Jim Rodgers this morning and he says China, Japan and Russia are the place to put money. Reminds us to buy low and sell high.
Hmmm
How many would vote to screw creditors? I guess it depends. Are they voting to screw foreigners, or their own pension funds or their own mutual funds? Maybe the banks they have their own money in?
What would happen if US citizens could vote to abolish the Federal Reserve Bank?
What do you feel abolishing the Fed would accomplish?
It's time for the Morlocks to head for the hills!
It's time for the Eloi to get a job.
You: It's time for the Eloi to get a job
Did you finish reading TIME MACHINE?
As with any risk management vehicle, they don’t always work and it’s pretty painful when they don’t. Actually, the biggest problem is not derivatives themselves, but some of the people who employ them. JMHO.
Right after he bails out Puerto Rico.
What do you feel abolishing the Fed would accomplish?
All that while we little folk get to pay fees and collect close to 0% interest.
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Close to zero is correct, my C.U. is currently paying 00.17% and if you want to borrow money (I don’t) the charge is 4%. they loan it out at 23.5 times as much as they pay out. It’s supposed to be member owned but the outstanding extra dividend they declare at the end of the year, does not reflect that.
LOL!
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