oh boy...not good
P!
Let the Mao-ist bastards choke on it. They deserve it.
I don’t think a stock market falls 8.4% in hours over concerns about slowing growth. I think the Chinese stock market is collapsing because investors have finally figured out that their entire economy is pretty much a con game.
When will they ever learn? Government makes the problems worse when they intervene. Allow the market to correct itself, and stay out of market manipulation. It's that simple... But sadly, those in power cannot conceive of any solution that does not involve them doing something, and taking credit for it.
Forward to progress!!!
Oh wait, wrong communist regime.
Related...
Global Trade In Freefall: Container Freight Rates From Asia To Europe Crash 60% In Three Weeks
http://www.zerohedge.com/news/2015-08-23/global-trade-freefall-container-freight-rates-asia-europe-crash-60-three-weeks
And that, my friends, is what happens when you have Crony Communism, where state-owned companies and communist-affiliated businessmen control most of the wealth.
And on Monday, our own economy, consisting of crony corporatism, excessive regulation, massive government spending and easy money, will suffer some more as well.
PING!
im ready to make some money tomorrow
Just came from Zero hedge. Pretty much all bad news this evening. Commodities, Shipping, Stock Markets, The Fed. Better it happens on Zero’s watch.
Nah, didn't think so.
The Chinese hold a lot of USA paper, when do they start cashing it in?
That's a 37 percent loss in 73 calendar days.
I always assumed it would be Japan, with their heavy debt-spending, that would start the global crunch. Looks like there's another contender.
The Chinese recently devalued their Yuan (aka Renminbi or RMB) for several reasons to gain monetary flexibility, one of which was to have other means to stabilize their currency in a bid to vie for reserve currency status.
The devaluation leads to inflation of goods and services inside China and outside China for global Chinese companies. Hence, the selloff represents a move to liquidity and cash to handle the inflation.
The devaluation of the Yuan causes the US Dollar to appear stronger, hence the price in Yuan of exports increases while in US Dollars it remains the same because the Dollar exchanges for more Yuan.
The US stock markets are affected because there are large funds of Chinese investors selling US stocks for US dollars (also in London for £) that are now stronger against the devalued Yuan.
Short US financials until the Chinese market finds its new level which may be as long as a week. Then cover. Good luck with the timing which is key and no, I have no crystal ball for that.
The US markets have been propped up by the Fed Reserve anyways via the inflated bond markets who move funds between bonds and stocks and back to bonds on a regular basis. This fact has disturbed me and others for many years. At some point QE has to end (why?) because there’s no good fast way to spread the fiat funds into an economy where 93 million people are unemployed or underemployed without blowing a lid on inflation. Therefore, Asian goods must come in at lower prices else their whole game collapses. The US consumer is the endpoint of most of Asian manufacturing. And the fall in oil prices means other global regions are now short of funds to allow China to become less dependent on the US consumer.
Oh my, Prince Alwaleed started this whole cycle from his fear that US frackers would emerge so large as to bury his Kingdom. Well, golly gee gosh, looks like he’s lost control of the game as the world races to the bottom.
Donald Trump could not come at a better time in American History.
Roller coaster on the way down with everyone screaming.
Heads up.