A lot of nervous investors and fund managers are awaiting the opening of the US stock exchanges after the huge sell-off today in the Chinese Market. Chinese stocks plummet 8% as regulators pricked their stock bubble. An 8% drop in one day’s trading is like our NYSE losing 1200 points! This is panic selling, a financial disaster.
From Fortune.com: “Even before noon Monday, trading in China’s biggest stockbrokers was halted in Shanghai because their own stocks had crashed by the daily limit of 10%. That’s the kind of day it was in China’s stock markets—or casinos, depending on your persuasion.”
WSJ reports more trouble looming: Once again, Greece is being roiled by political uncertainty and the uneasy mood is spilling over to other markets. The anti-austerity party Syriza’s strong standing in the polls raises the risk that it will win power. This is likely to leave the rest of the Eurozone in a quandary. Syriza is likely to demand that Greece’s debts be forgiven, the alternative being a Greek departure from the euro. Although the single-currency region would undoubtedly be stronger without Greece, its abandonment of the single currency would put paid to any notion of the currency’s irreversibility.
As long as we’re looking at the dark side…David Stockman’s report, posted Saturday, looks at the car credit situation in America (Bad- Like the housing bubble) and the underlying truth in the retail sector (up a respectable 4%) which looks good until you discover:
It’s so easy to fudge the truth in politics when it comes to the economy. The middle class is disappearing but the administration can tell us “things are improving” because he;s covered by that 4% overall growth number.
Think we’ll go full blown depression conditions this time Jack? (This really sucks)
I would expect the market will also react to Obama SoU tonight. With his long list of tax increases to pay for the “free” community college he wants taxpayers to pay for more money will be going out of people’s pockets to the government’s pockets instead of private business investment.
I don’t know why Obama is doing this, he knows almost none of this junk is going to pass.
All he really knows how to do is put on a show and community organize. The two go hand-in-hand and reality doesn’t matter.
They will crash the markets during election season to blame Obama. The Donors control the country all of it with the military Industrial complex. They will all get rich hedging against it. Taxpayers will pay to bail out the banks by law.
Then they may have bankrupted the company of USA Inc to allow a corporate takeover. There is no such thing as a Free market where they do not cheat us.
About 80 people now own 48% of the worlds wealth. 2016 they will have at least 1/2. The crash? well they may very well have bought the world into one big global fascist state.
The oil dropping is not just because. It makes the dollar rise only to fall harder. They are messing with China and the rest of the world as well. It is all the same companies and people folks in all the markets… there is no separation.