Global financial system implosion begins

[hipipol]

this is the very nature of the system
it doesn't walk with its head up, all secure
It instead staggers forward, pushing a leg out from time to time, merely to stop itself smashing the collective chops into the deck
It was ever thus

 

[Falcon]

Greece: in a global financial system sustained now only by sentiment (a.k.a "wishful thinking"), the proof by contradiction that such wishful thinking is unwarranted. The system's inability to restore functioning here will constitute evidence that the system cannot restore functioning anywhere. Watch the hedge funds, which piled in on the mistaken assumption that their positions would be guaranteed. They are the mine canaries.

 

[not-bono-ever]

.

 

[teqniq]

China stock markets continue nosedive as regulator warns of panic

Chinese stock markets tumbled again on Wednesday as investors shrugged off a series of support measures by Chinese regulators, including the central bank’s first public statement in support of the market since it cut interest rates in late June.

Minutes after opening, the Shanghai Composite Index fell by just over 8%. while the Shenzhen Component was down almost 5%.

Within ten minutes of trading, more than 1,000 shares across China’s two stock markets had dropped by the daily limited of 10% and had their shares automatically suspended. About 1,400 companies, or more than half of those listed – filed for a trading halt in an attempt to prevent further losses.

China’s securities regulator said there was “panic” in the stock market with irrational selling off increasing and “leading the stock market to a situation of intense liquidity”....

Sounds like brown trousers time there to me.

 

[not-bono-ever]

Chinese sellers have found themselves locked out of 72 pc of the market today.

Don't want market to fall? Stop people from selling.

It's easy this economics innit

 

[not-bono-ever]

Systematic risk

You may hear this a lot in the near future in the context of China

 

[Idris2002]

All part of Deng's secret plan. I hope.

 

[hipipol]

two little snippets...

Particularly, when you consider leverage in China is very often higher than it appears and what Citi mean by “sentiment help” are measures — some might call them desperate and floundering measures — which China hopes will halt a rout across Chinese equity markets. We’re heading towards 30 per cent losses since the June 12 peak across the major markets, even if they are still well in the money over a longer timeframe.
http://ftalphaville.ft.com/2015/07/06/2133654/china-and-the-delusion-of-control-redux/

“People are selling everything in sight to get their hands on cash,” Liu Xu, a trader at private asset-management company Guoyun Investment Co in Beijing, said by phone. “Some need to cover their margin calls in the stock market while others are gripped by fear that the Chinese economy will be affected by this crisis.”
http://www.bloomberg.com/news/artic...-spreads-from-stocks-to-the-price-of-pig-food

So to make an apple-and-pears comparison: the loss in the value of Chinese companies at more than $3 trillion is about 20 times what most economists expect the write-offs of Greek government debt will ultimately turn out to be.
http://www.bbc.co.uk/news/business-33440565
Bit late by peston but then again, he has been camped out Athens for quite a while........

deffo squeaky bum time
The spillover from the markets to the "real economy" is happening

 

[hipipol]

All part of Deng's secret plan. I hope.

Plan?

 

[treelover]

Ali Baba, massive Chinese E-Commerce Group has lost 10% of its U.S share price in the last couple of days.

not celebrating all this at all, countries like in Africa will be in terrible straits if the Chinese economy goes belly up.

 

[gosub]

All part of Deng's secret plan. I hope.

The only people who took advantage of the relaxed restrictions on using borrowed money to buy shares, all went short....so they have reintroduced the restrictions (not that there are many shares they could trade on)

 

[not-bono-ever]

As I posted earlier, in order to back up margin calls, any old shit was formally allowed as cover. The impact on the absurd Chinese house bubble could be immense as debts are called in.commodities prices are crashing as assets are dumped to cover losses. Australia was experiencing a downturn in its ore exports - this will kill them.

 

[J Ed]

So the NYSE has gone down on the same day as the financial turmoil continues in China... probably a coincidence...

 

[not-bono-ever]

um.

 

[J Ed]

Panic, freakout, hoard

 

[yield]

So the NYSE has gone down on the same day as the financial turmoil continues in China... probably a coincidence...

Stock trading closed on NYSE after glitch caused major outage – as it happened
Guardian. Wednesday 8 July 2015
Odd timely coincidence

 

[yield]

So to make an apple-and-pears comparison: the loss in the value of Chinese companies at more than $3 trillion is about 20 times what most economists expect the write-offs of Greek government debt will ultimately turn out to be.
http://www.bbc.co.uk/news/business-33440565
Bit late by peston but then again, he has been camped out Athens for quite a while........

deffo squeaky bum time
The spillover from the markets to the "real economy" is happening

$3 trillion divided by 90 million investors average loss of $33,333.

Here's the chilling thing. What's going on in China is madly redolent of the 1929 Wall Street crash.

Here's why.

The 150% rise over a year in the Shanghai Composite Index to its mid-June peak was largely driven by investors borrowing to buy shares, or margin trading in the jargon, just as happened in the US during the Roaring Twenties.

And the subsequent self-reinforcing collapse has been driven by China's indebted investors being forced to sell shares to meet their debts.

As for the economic significance of what is going on, well these very big stock markets in Shanghai and Shenzhen are no longer serving their core purpose of supplying equity capital to businesses - which will have a significant negative impact on Chinese growth.

And the collapse completely undermines Beijing's attempt to shift economic power from State Owned Enterprises to the private sector and markets.

The public sector is once again all powerful and all important.

And if the market rout leads to a further significant deceleration in the growth of the world's second-biggest economy, we will all feel the after shocks.

 

[hipipol]

panic
total FUD guff

 

[yield]

panic
total FUD guff

The emerging markets BRICS kept the world capitalist system going after the 2008 financial crisis.

All apart from India, who is benefiting from lower oil prices, are fubar. Interesting times.

 

[hipipol]

$3 trillion divided by 90 million investors average loss of $33,333.

I assume you referewnce yhe
Oh fuck that, they are all more mental then most
MY old ama, who I love more than by balls, she was a lovely woman
all counts:- own proper real stuff
last I heard she was in Belfast
Fuck what those odious bum fucks have done to her

 

[hipipol]

The emerging markets BRICS kept the world capitalist system going after the 2008 financial crisis.

All apart from India, who is benefiting from lower oil prices, are fubar. Interesting times.

can you dig just a little deeper?

 

[yield]

can you dig just a little deeper?

Yeah I know it's bigger hipipol. Systemic. I've often been on my tod bumping this thread for years.

What are you thinking of? In simple language please

 

[hipipol]

the total tank in China will pull all EM EQ Mkts down
Himachel Futuristic
Blinding story
dig in
make yer wedge, if you have any...

 

[yield]

the total tank in China will pull all EM EQ Mkts down
Himachel Futuristic
Blinding story
dig in
make yer wedge, if you have any...

Nah I live payday to payday. India too huh. Himachal Futuristic never heard of them.

Think i'll buy more tinned food tomorrow.

 

[Fez909]

Chinese investors banned from selling shares for 6 months: http://www.theguardian.com/world/20...from-selling-their-stakes-for-next-six-months

 

[ItWillNeverWork]

Chinese investors banned from selling shares for 6 months: http://www.theguardian.com/world/20...from-selling-their-stakes-for-next-six-months

Well that's one way to do it. Serious question though - what the fuck happens now?

 

[gosub]

Well that's one way to do it. Serious question though - what the fuck happens now?

if they've got a derivatives market, a run on that. The trend on their stock market in 6 months and 1 days time will be downward.

 

[frogwoman]

Oops

 

[Barking_Mad]

Are we dead yet?

How about now?

Great thread btw.

Tinned goods eh? Preppers?

 

[teqniq]

China stocks bounce back after days of panic selling among investors

China’s stock markets have bounced back, restoring some calm to markets after days of panic selling.

The deepening crisis prompted China’s stock exchange regulator to impose severe limits on share selling on Wednesday, warning of a panic in the market – Beijing’s most drastic step yet. Shareholders with large stakes in listed firms were banned from selling for six months, in an attempt to halt the wild swings seen in stock markets in recent days.

The CSI 300 index of the biggest listed companies in Shanghai and Shenzhen gained 6.4% on Thursday, but investors remained nervous. The Shanghai Composite rose 5.8%, the biggest daily percentage gain in six years. Hong Kong’s stock market also rebounded, finishing 3.7% higher. On Wednesday, the Hang Seng dropped 5.8%, its biggest one-day percentage fall since the financial crisis in 2008, as panic spread from China.

It remains to be seen whether this is a temporary reprieve or the start of a stabilisation....