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nice chart. looks busted to me.
While attention is focused on Greece, China is having a serious market meltdown.
After exploding earlier in the year because of deregulation, China's benchmark Shanghai Composite has collapsed a crazy 29% since the highs of early June. China's other stock markets have had similarly steep falls.
Bloomberg notes that the crisis is closely mirroring the 1929 Wall Street crash, which led to the Great Depression in the US in the 1930s.
...
In 1929, Wall Street's banks did something similar. JPMorgan and several other top financial firms agreed to pool resources and buy up shares to put a floor under prices. It happened after a drop of about 30% for the Dow Jones Industrial Average.
The effort by the US banking systems had only the briefest of effects on the index, and America was eventually plunged into the Great Depression.
It's too early to tell whether China's latest move will work, despite the insistence of state media. So far it has failed to curb the huge volatility that has been plaguing China's stock markets recently. The Shanghai Composite opened up over 7% and eventually slipped back into the red before ending the day up 2.4%.
http://finance.yahoo.com/news/chinas...095900183.html
http://www.bloomberg.com/news/articl...ion-stock-rout
nice chart. looks busted to me.
One thing that should be noted when comparing to the 30's is that back then currency wasn't fiat...
Indeed. The chinese government is also far more willing and able to intervene. In fact they have done quite a bit so far, far more than the US government could or would.
Not helping the case for the Chinese trying to get their currency as a reserve currency to supplant the US.
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