#BlackMonday China's market Leninism turns dangerous for the world 1

Global markets have swung overnight from a mystical faith in Communist competence to near revulsion. But this August storm may yet blow over

By Ambrose Evans-Pritchard

9:19PM BST 24 Aug 2015

The world financial system is at a dangerous juncture. Markets no longer believe that China’s Communist leaders are in full control of the country’s $27 trillion debt bubble, or know how to manage fast-moving events beyond their ken.

This sudden loss of confidence in the anchor economy of East Asia has struck before the West is fully back on its feet after its own debacle seven years ago.

Interest rates are still near zero in the US, the eurozone, Britain and Japan. Fiscal deficits are at unsafe levels. Debt is 30 percentage points of GDP higher than it was at the onset of the Lehman crisis. The safety buffers are largely exhausted.

“This could be the early stage of a very serious situation,” said Larry Summers, the former US Treasury Secretary. He compared it to the two spasms of the Asian crisis in the summer of 1997 and again in August 1998.

Ominously, he also compared it to the "heart attack" of August 2007, when credit markets seized up on both sides of the Atlantic and three-month US Treasury yields plummeted to zero. That proved to be a false alarm, but it was an early warning of the accumulating stress that would bring down Western finance a year later.

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#BlackMonday SILICON VALLEY IS HEADED FOR DISASTER, AND NO ONE CAN SAVE IT @Breitbart

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Faris Algosaibi / Flickr

by MILO YIANNOPOULOS24 Aug 2015

San Francisco, heartland of wacky progressive politics but also home to some of America’s most innovative technology companies, is in trouble. Not just trouble, actually, but serious shit.

And the main reason is China. The Wall Street Journal has a good explainer on what’s going on over there, but the basic thing you need to understand is that a lot of glossy American stocks are about to take a tumble, especially tech stocks.

Chinese businessmen, drama queens that they are, have started throwing themselves off Beijing skyscrapers. That makes for good headlines, but it’s also a warning sign to American entrepreneurs and investors thanks to the influence on global markets that China is already having.

(Don’t feel too bad for these suicidal fat cats, by the way: their falls are being cushioned by the bodies of Foxconn factory workers assembling iPhones.)

Talking heads on CNBC are gearing up to sound smart about a crisis they should have seen coming months ago. But if you want a quick economic primer on what’s about to happen to America’s young tech giants, here it is.

Expensive stocks take the hit first when things go wrong in the wider economy. Technology companies are getting blasted because, frankly, there is fat on the bone. But there are two other factors in play: first, all tech companies are to some degree punts or speculation.

No one needs a new formula for mac and cheese every year, but innovation requires punts on better ways of doing things in the future that may or may not pan out. Set aside consulting, data storage, and a few business-to-business services, and technology as a category looks hugely vulnerable.

That’s not only because tech investors are making risky bets but because America’s technology darlings aren’t exactly making good on Silicon Valley’s legacy. Microsoft, Cisco, IBM and a few other businesses of the old guard have a reasonable claim to being the companies that run the world, but Twitter and Facebook? Not so much – whatever their crazy valuations.

You see, as much as global financial concerns are going to hit tech companies harder than other sorts of enterprise, so too will their own lack of ambition. The ugly truth is that Silicon Valley has largely given up trying to fix big problems and has retreated into photo-sharing apps and productivity tools. That may sound harsh, but just look at some of the absurd and pointless startups that are getting vast checks written and tell me that founders don’t need a kick up the ass and a reminder that no one has solved batteries yet.

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#BlackMonday CHINA CRASHES AT THE OPEN: SHANGHAI, TUMBLES @Breitbart

PHILIPPE LOPEZ/AFP/Getty Images

by BREITBART NEWS24 Aug 2015

China’s fall is the latest in a series of jarring declines that have defied multibillion-dollar government efforts to stem a slide in prices following an explosive market boom. (AP)

From Business Insider:

After being obliterated on Monday, suffering the largest decline since February 2007, China’s share market is being hammered yet again today.

At the mid session break the benchmark Shanghai Composite index is down 4.33% at 3071.0605 points, extending its losses from the multi-year peak of 5178.2 struck on June 12 to 40.69%.

It is now trading at the lowest since February 9 this year.

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#BlackMonday #Obama reveals PLAN to DEAL with ECONOMIC CRISIS !

#BLAC MONDAY: GLOBAL COLLAPSE - #OBAMA LEGACY !!!

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The Associated Press

by BREITBART NEWS24 Aug 2015254

From David Scutt writing at Businesss Insider:

The global market crash continued on Monday, starting with China and then continuing around the world.

Fresh from being slammed by more than 4% on Friday, a sell-off that took weekly losses to more than 10%, Chinese stocks were hammered yet again on Monday.

At the close the benchmark Shanghai Composite index fell 8.492% to 3,209.91, taking its losses from the multiyear peak of 5,178.2 hit on June 12 to 38%.

The Chinese media is dubbing the collapse “Black Monday.”

Other markets in Asia also got hammered, with Hong Kong and Japan both falling 5%. Europe markets continued the rout, with most major indices down 2%-3% in early trading. And US DOW futures were down more than 400 points three hours before the market open.

Read the rest of the story at Business Insider.

Buddy, Can you SPARE A DIME ? World stocks, dollar tumbles !!!

Great fall of China sinks 

 

By Marc Jones22 minutes ago

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By Marc Jones

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LONDON (Reuters) - Alarm bells rang across world markets on Monday as a near 9 percent dive in China shares and a sharp drop in the dollar and major commodities panicked investors.

European stocks were almost 3 percent in the red and Wall Street was braced for similar losses after Asian shares slumped to 3-year lows as a three month-long rout in Chinese equities threatened to get out of hand.

Oil slumped another 4 percent, while safe-haven government U.S. an German bonds and the yen and the euro rallied as widespread fears of a China-led global economic slowdown and currency war kicked in.

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