The thing that is fascinating to me is that the Shanghai Composite is now at the level it was at in late January of THIS YEAR. So, we now have a break-even index for this year. In fact, looking at exactly 1 year ago, the index is still nearly 50% higher than it was in August 2014. The Index would have to lose another 1,000 points (or 33% of where it is now) to have a flat performance for a year.
Not certain why this is panic time for everyone else... Or even China, for that matter. Even here in the US, the NASDAQ lost 80% of its value in 2 years, value which has yet to be recovered and we’re still here living in luxury. The crap going on implying that by year end we are all going to be shooting each other for the last can of tuna in the world sounds asinine to me.
I think what could happen in a very bad and deep crash are: riots (EBTs cut off), panic, empty grocery shelves in some areas, and possible loss of essential services in some way (power, etc).
Even localized, these crisises will get international media attention, and that can make the problem worsen or incite the panic even more.
I would have some food and water on hand anyway even if there were not some very deep concerns about the global economy. It is a wise thing to do.
Question, how does the Feds printing extra bills figure in the stock market? There should be some kind of relationship, right? I’d ask my bro but texting on a phone stinks.