China in the merde
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This will put the Greece business in perspective:
Quote:Almost $3 trillion in market value – more than the entire economic output of Brazil – has been wiped out since markets went into reverse last month, posing a bigger headache for many global investors than even the Greek debt crisis.and the cause:
Quote:Weighed down by a property downturn, factory overcapacity and high levels of local government debt, economic growth had already been expected to slow to around 7% in 2015, robust by global standards but its weakest annual expansion in a quarter of a century.So, all the fenangling and deals in the world could come to naught if China's economy hits the wall and the rest of the world seizes up.
http://www.bbc.com/news/business-33438416Mainland Chinese shares continued to plunge on Wednesday, falling over 8% at one point despite more moves by regulators to stabilise the market. The Shanghai Composite was down 5.9% to 3,506.22 in early trade. That came despite the insurance regulator raising the limits for insurers to invest in blue chip stocks to 10% of their total assets, from 5%. Hong Kong's Hang Seng index was down 5.1% to 23,710.97, following the mainland's fall.Every expert knew the bubble had to burst and most thought it would the property bubble. As you say the knock-on effects will hinder any recovery elsewhere. Australia, shares were lower as the price of a top exporter, iron ore, fell almost 6% to a three month low. (A bit of idle chit-chat…i often came across Australians who boasted of how great their exchange rate and economy was compared with us poor poms…i always replied thay are dependent upon China and that i couldn't wait for a recession to hit the Chinese and watch the Australian economy crumble…schadenfreude as the chickens come home to roost.)
http://www.theguardian.com/world/2015/jul/17/chinas-biggest-banks-loan-stock-market-chinese-securities-finances-margin-lendingChina’s biggest banks have lent 1.3tn yuan (£134bn) in an attempt to halt a meltdown in Chinese shares… CSF had 2.5tn yuan to 3tn yuan of funding available as of this week to shore up the stock market if needed…
Quote:“It doesn’t have to use up all the money, as long as it can make the rest of the market believe that it has enough ammunition,” Hao Hong, a China strategist at Bocom International in Hong Kong, told Bloomberg. “It is a game of chicken. For now, it seems to be working.”So capitalism is now described as a game of chicken
Guardian report of the knock-on effecthttp://www.theguardian.com/technology/2015/jul/22/apple-share-price-chinese-economy-mining-commodity
The economic instability in China has not gone awayhttp://www.bbc.com/news/business-33671459Shares in mainland China have recorded their biggest one-day fall for more than eight years following a sell-off. Profit at China's industrial firms dropped 0.3% in June from a year ago. factory activity in July saw its worse performance for 15 months.
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