Posted on 01/03/2016 11:02:35 PM PST by Zakeet
Following the initial halt in CSI-300 Futures at the 5% limit down level, the afternoon session opened to more carnage and amid the worst 'first day of the year' in at least 15 years, Chinese stocks collapsed further to a 7% crash. At 1334 local time, stock trading was halted for the rest of the day across all exchanges (at least two hours early).
[Snip]
Dow futures are now down over 150 points from NYE close, Gold and Treasuries are bid, and offshore Yuan has plunged most since the August devaluation.
(Excerpt) Read more at zerohedge.com ...
You, um, pretty much had it right the first time. Exactugly.
Never heard of a brand of guns named "Cash"...???
Bernie Sanders likes this idea.
Don’t forget the lovely commercial real estate market. After the horrid performance of brick and mortar stores during the Christmas buying season...I sense...a disturbance...
Right, but if the next president is a dem how will they blame the crash on the pubs? And, I think it’s gonna crash no matter who’s in.
Piece 'o cake. 1. Dem prez. 2. Market crash. 3. Prez says pub's fault. 4. Press + 1/2 the U.S. agrees. Sure, the prez will use big words like "special interests" and "predatory derivatives" all made by winners of life's lottery and their pub cronies in congress but non of it will either matter or make sense.
I think it's gonna crash
Absolutely, prices fluctuate. We deal with it. The only question is when and which are the best market trades we need to make in order to protect and feed our families.
“Communist Stock Market” is an oxymoron.
‘Jingoism, at least in part many of the Chinese are convinced their market will never crash because this is, to them, the Chinese century. They will buy stocks that are on the way up because they don’t think they’ll ever go down.’
Interesting. Kind of like overly-optimistic bets on the home team. So the Chinese citizens got sucked into a bubble. I’m sure their own government incentivized such investments too.
I agree, caww. Also China still has totalitarian control over its nation. Propaganda to ‘talk up’ investing in China, tax incentives, and censorship to discourage bad news.
Was there any ‘employer matching’ to encourage Chinese to invest?
Actually, when a totalitarian regime controls its media, it not only causes bubbles from home-grown investors, but it also causes bubbles from foreign investors. Without freedom of the press an investment is rarely as good as it seems.
Exactly. When unemployed Joe and Ethel were living out of their car, sleeping in Wal-Mart parking lots overnight...and even THEY could get a mortgage and buy a house...you know we were in trouble.
Trump knows China’s a problem... not that he’s mentioned it more than a few thousand times - - or anything...
Years ago, when the bloviator Jim Rogers was pimping the “emerging markets,” I tried to explain to people two salient points:
1. You cannot trust the economic information coming out of communist/socialist/fascist governments (our current administration is the latter)
2. The ‘emerging markets’ are doing nothing to create real wealth. They simply parasite on the wealth of other nations. If those nations fall into recession, the ‘emerging markets’ are screwed.
Unfortunately, my warnings have been vindicated and Jim Rogers looks like the financial pimp he is.
No, this is occurring on top of the fascistic (truly, in an economic sense) banking and financial system.
This is the result of:
1. China’s economic “boom” was a bubble from the get go.
2. Their economic data was all cooked. Their ghost cities proved many years ago it was all BS
3. China’s exports are not bringing in the money they need to sustain their government, especially now that many, many Chinese farmers, etc. left their former lives to join the manufacturing force.
4 As a result of 1-3, China has begun a currency war. Two of the effects of a currency war are that, first, no one wants your currency because it could be devalued the day after you get it, and two, no one wants to agree to trade contracts because the “value” of the exchange for your country’s own currency and the goods/services could also be impacted by the changing currency.
If you can do so without taking too much of a penalty hit, it may be a good idea to convert some of that 401K into commodities precisely because they are so low.
Remember, you don’t invest in the commodities (gold, silver) to turn around and sell it for a quick profit. You invest in PMs as insurance against a crashing currency. In short, it preserves a chunk of purchasing power.
One of my FAVORITE movies of all time!
“I have $100K in laddered CDs. I figure five more years on my back, and I’m done.” ~Jamie Lee’s Character, LOL!
Yes, they do cry doom quite frequently, and outside of their economic stories, they —in their anit-partisanship — are actually quite blinded by their own partsanship. I’ve spent a lot of time on their site since I started studying economics.
They cry doom because they are analyzing from the Austrian perspective.
And, according to Austrian economics, we are in a massive bubble that will burst eventually.
In the past, when any powerful/wealthy nation has been a position like this, there were other powerful/wealthy nations to soften the blow.
Not this time.
This time, all of Western Civilization and now all of the eastern nations are in this exact same boat.
A global “reset” is about to occur. Let’s hope it doesn’t lead to WWIII, as the previous global economic crises led to.
When there’s blood in the streets, it’s time to buy.
“brilliant leadership” is transparently corrupt!
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