Since I mentioned this in the Greece??? post, incase you missed it, ( http://internationalpreppersnetwork.net/viewtopic.php?f=22&t=5785 ) The Chinese Stock Market has dropped by a third and government controls have been put place to stop a complete crash like the one that lead to the great depression. I thought this subject deserved another post.
Now, I saw this coming and have been watching it for a while...but... this is not my area of expertise 😳 ....so I am hoping someone that knows this subject better can explain to us (Me) more about contagion. (hopefully in an easy to understand way). How does this effect our own stock market and country? Its all Chinese to me.
(PS. Don't let this devolve into "The secret Chinese conspiracy" sort of shite. Just stock market and contagion related info)
I have a Tactical Harness and I have a Tool Belt. The Tool Belt is more Useful.
Well I try to watch a few things...out the corner of my eye sort of... China is one....I am not concerned at all by the drop in the stock market...look back a year...classic exponential growth for over a year.....a correction was due..I consider this just a independent variable. Don't get me wrong they got some serious problems..exporting data, energy costs, unemployment.. stuff like that is a better indicator,, this...pfff no big deal, indicates how much labour costs had risen that people could plow savings back into speculative markets..wasn't that long ago a bike, and fresh vegtables was all you could hope to own....anyone remember those days?
Even now the market is still 50 percent higher than last year...Don't get me wrong there are problems....I had the feeling last year we were at the peak of all that could be produced and consumed at the lowest cost possible...the piniacal of a consumer society you could say ( what looked like a homeless guy was asking me for money out side value village a couple weeks ago and his cell phone goes off, I said you better take that it could be your broker)
The people who are losing their money in the correction are the average joes, the government is just doing its prerequisite performance for them, the smart money was out much earlier......looks like the people will just have to put in some overtime to recover their losses, good thing we all keep buying their stuff.....
Contagion....not from this (stock market)
just my non expert thoughts, worth exactaly what you paid for them...wake me when the market has lost 100 percent of its yearly gains.
Here is main stream media calling it last December.. http://www.economist.com/blogs/freeexchange/2014/12/chinas-stockmarket It was crazy then... classic bubble description
Here is a line from a investor mid way down the page "and I guarantee you this bull market will last" this from a guy who admits he lost big in the 2007/8 down turn....gulibility its renuable!! count on it. If he has to go begging it will be..brother can you spare a bitcoin....rough times indeed
Give a man a gun, and he can rob a bank. Give a man a bank, and he can rob the world.