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It's CHINA that's facing financial meltdown and the biggest stock market crash
Daily Mail ^ | 07/08/15 | Simon Tomlinson

Posted on 07/08/2015 6:14:46 AM PDT by Enlightened1

Nearly $3trillion wiped off Chinese stock markets in just the last few weeks

Government and investors launched campaign to prop up tumbling shares

Experts draw parallels with the credit booms that led up to the 1929 crash

Analyst: 'I've never seen this kind of slump before. Don't think anyone has'

China's tumbling stock markets plunged even further today, intensifying fears the country was tail-spinning towards the biggest financial disaster since the 1929 Wall Street crash.

Almost $3trillion (£2trn) – more than the entire economic output of Brazil – has been wiped out since markets went into reverse just a few weeks ago, posing a bigger headache for many global investors than even the Greek debt crisis.

China's government, regulators and financial institutions are now waging a concerted campaign to prop up the nation's stock markets – a move that failed spectacularly in the 1929 crash that triggered the Great Depression.

The plunge in its previously booming stock markets, which had more than doubled in the year to mid-June, is a major problem for President Xi Jinping and China's top leaders, who are already grappling with slowing growth in the world's second largest economy and another bursting bubble.

(Excerpt) Read more at dailymail.co.uk ...


TOPICS: Business/Economy; Culture/Society; Foreign Affairs; Japan; News/Current Events
KEYWORDS: brazil; brics; china; crash; india; japan; meltdown; russia; southafrica; stock
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To: Enlightened1

“They can collect any time they want.”

They can sell their bonds anytime. So will the Chinese money become the world reserve currency?


21 posted on 07/08/2015 6:37:57 AM PDT by Mike Darancette (Barack Obama is not inarguably sane.)
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To: Enlightened1

Can China feed itself?


22 posted on 07/08/2015 6:43:24 AM PDT by Mike Darancette (Barack Obama is not inarguably sane.)
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To: Mike Darancette

Only through Capitalism.


23 posted on 07/08/2015 6:44:34 AM PDT by Enlightened1
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To: Enlightened1
However, because so little of foreign money is invested in China, the effect on equities markets around the world should be minimal. The important thing here is that the Big Four banks of China (Bank of China, China Construction Bank, Industrial and Commercial Bank of China, and Agricultural Bank of China) are still very solvent, mostly because the Chinese government forced these banks to substantially increase their liquid asset reserves in light of the 2008 US stock market crash and that scary experience in Europe in 2010-2011.

In effect, these Big Four banks are the "economic backstop" preventing an all-out crash of the Chinese economy. And only a small number of Chinese were actually into the stock market, given the aversion to stock markets by most of the population.

24 posted on 07/08/2015 6:47:14 AM PDT by RayChuang88 (FairTax: America's economic cure)
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To: Enlightened1

They’ve actually been pretty steady on USTs for about a year now...

http://www.treasury.gov/ticdata/Publish/mfh.txt


25 posted on 07/08/2015 6:48:49 AM PDT by ameribbean expat
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To: central_va
How long will it be before China demands payments from all the U.S. Treasury Bonds?
Bonds mature all the time, its the way it works.
Yeah - and new ones get sold all the time
. . . provided of course that China buys them . . .

26 posted on 07/08/2015 6:52:58 AM PDT by conservatism_IS_compassion ('Liberalism' is a conspiracy against the public by wire-service journalism.)
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To: central_va

Question is: what happens when, and when will, China cash in _all_ those bonds? You don’t have to wait for the maturity date.


27 posted on 07/08/2015 7:07:33 AM PDT by ctdonath2 (The world map will be quite different come 20 January 2017.)
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To: Enlightened1

I thought the QE’s were discontinued. At the time it was 87B per month. Do you have a source about the Fed printing 1B a month and where they are pumping it in to?


28 posted on 07/08/2015 7:09:10 AM PDT by Ghost of SVR4 (So many are so hopelessly dependent on the government that they will fight to protect it.)
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To: Kozak

That’s what I say. Tell em to Come and Take It.


29 posted on 07/08/2015 7:14:07 AM PDT by X-spurt (CRUZ missile - armed and ready.)
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To: Ghost of SVR4

“Continuing to effectively print $85 billion per month of new money after months of telegraphing at least a modicum of reduction can only translate that our economy is frail and infirm, languid if you will.”

http://www.forbes.com/sites/richardfinger/2013/09/20/the-federal-reserve-is-making-a-big-mistake/

Fed Keeps $85 Billion QE Pace Looking For Stronger Growth

http://www.bloomberg.com/news/articles/2013-10-30/fed-keeps-85-billion-qe-pace-awaiting-signs-economy-picks-up

Year In Numbers: The Federal Reserve’s $85 Billion Question

http://www.npr.org/2013/12/17/251796694/year-in-numbers-the-federal-reserves-85-billion-question

Fed Reserve to Continue $85 Billion a Month Quantitative Easing

http://www.breitbart.com/big-government/2013/09/18/fed-reserve-to-continue-qe-stimulus/


30 posted on 07/08/2015 7:17:02 AM PDT by Enlightened1
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To: Enlightened1

These articles are almost two years old. Anything more recent?


31 posted on 07/08/2015 7:19:29 AM PDT by Ghost of SVR4 (So many are so hopelessly dependent on the government that they will fight to protect it.)
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To: Texas Eagle

LOL. Yeah the PLA is going to come and take possession of the property.
Dear Leader will be the least of their worries.


32 posted on 07/08/2015 7:21:15 AM PDT by Kozak (Walker / Cruz 2016 or Cruz/ Walker 2016 Either one is good...)
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To: Ghost of SVR4

Bloomberg. No posting on FR. Says QE ended last October.

bloombergview.com/quicktake/federal-reserve-quantitative-easing-tape


33 posted on 07/08/2015 7:26:24 AM PDT by jjotto ("Ya could look it up!")
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To: Enlightened1

China is so screwed.


34 posted on 07/08/2015 7:31:44 AM PDT by Lazamataz (I am so screwed.)
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To: Enlightened1
How long will it be before China demands payments from all the U.S. Treasury Bonds?

Not only will they demand payment, but with 0bama and congress continuing to fritter away OUR money, with them going bust

WHO WILL BUY OUR DEBT?

35 posted on 07/08/2015 7:34:18 AM PDT by 21st Century Crusader (August 26, 1191)
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To: Enlightened1

The biggest shock is that anyone is shocked when communist dictatorships fail economically.


36 posted on 07/08/2015 7:42:00 AM PDT by EternalVigilance (Polling: The dark art of .turning a liberal agenda into political reality.)
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To: ShadowAce

Those south china sea ambitions were predicated upon a two year economic stability window for success. The military cannot divide focus between external objectives and retaining internal stability for the current political controlling faction.


37 posted on 07/08/2015 7:44:50 AM PDT by Ozark Tom
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To: 21st Century Crusader; All

We got that

Then add

1) The housing bubble.

2) The student loan bubble

3) The credit card bubble

4) The Derivatives Bubble

5) The Stock Market Bubble

6) The China Bubble

7) The E.U. Bubble

To name a possible few.


38 posted on 07/08/2015 7:50:13 AM PDT by Enlightened1
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To: EternalVigilance

Only to Leftist.

Some how they think they are immune to the law of supply and demand.


39 posted on 07/08/2015 7:51:45 AM PDT by Enlightened1
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To: 21st Century Crusader

Exactly!


40 posted on 07/08/2015 7:52:03 AM PDT by Enlightened1
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