China dropped by another 3.5% tonight, putting it down 20% from recent highs. Their stock exchange, however, is utterly meaningless to world markets. But it’s a side effect of the core issues, which is capital flight, currency devaluation, and a drawing down of their currency reserves. Bear in mind, according to McKinsey, the Chinese household and corporate debt are the most leveraged in the world.
Let’s face it, the world is awash in debt. It will take a miracle to have this all end well.
Crude is down by 3% and Dow futures are at session lows, -182.
If you enjoy the content at iBankCoin, please follow us on Twitter
Philip Henslowe: Mr. Fennyman, allow me to explain about the theatre business. The natural condition is one of insurmountable obstacles on the road to imminent disaster.
Hugh Fennyman: So what do we do?
Philip Henslowe: Nothing. Strangely enough, it all turns out well.
Hugh Fennyman: How?
Philip Henslowe: I don’t know. It’s a mystery. – Shakespeare In Love
BoJ saved China the last time they fell at this level. The Bullard Rally appears to have faded. Draghi yesterday didn’t seem like he had to votes to surprise us with more QE next week. We saw this form since 2009, we knew one day it finally would fall apart with the beyond over surplus of materials the speculators were taking loans on…bubble pops, and new one is started again.
Sweet, Kuroda was out tonight too saying he wasn’t planning to expand the QQE right now. SO no Central Banks around to mess us Bears up. Dudley speaks today, but we know it will be all dove talk.
There is a fantastic 3 part piece on the China market melt in here http://whowhatwhy.org/