China’s Stockmarket has melted down again, slumping 7% before a suspension in trading. That saw Germany plunge 4%, London 2.4%, France 2.4% and the Dow Jones plunged 460 points before pulling back to a 1.6% drop.
Our Market and Australia’s have also been hit with both down over 1%. The catalyst this time was a 10th straight reduction in manufacturing in China and geopolitical tensions between Saudi Arabia and Iran didn’t cause a spike in oil after it was revealed that oil is still in a glut and Saudi Arabia is likely to continue pumping just as Iran comes back onto the global market after sanctions end in an attempt to damage Iran’s economy.
Why could it be worse this time around in China? The wholesale restrictions on big market players selling stock comes off tomorrow so if they slumped 7% in a controlled market, God knows what happens when those controls come off.
The global economy has built a false recovery post the global financial crash and central bank medicine cabinets are empty for solutions as quantitate easing moves from being a momentary need to full blown addiction.
The billions National have borrowed for tax cuts to the rich may yet bite us in the arse as the cost of borrowing soars if there is another global collapse.
The thing about the global economy, 2008 and all that jazz is that no one actually took the hit. The losses weren’t realised at anyone one’s expense. Hence the debt is still being passed around like a package in one of those old fashioned parlour games, waiting for the poor sap whose holding it when the music finally stops.
You could easily argue the Saudis actions that have stirred up even more tensions in the Middle East could have a desired effect to drive oil prices upward, something the Saudis badly need.
As for share markets, they go up and down like yo yo’s and nothing much changes!
Fear not fare Martyn.
We live in New Zealand matey bro.
We have huuuuuuge resources of food, fresh water, arable lands, fruits, pot, breweries, mushrooms, forests , meadows, each other, LPG, sweet crude oil, fresh air, sunshine, fishes in a vast ocean and made all the more plentiful because there’s only 4.3 million of us. That’s the population of Melbourne.
Who cares if China’s economy drops like a brick. The Warehouse will be fucked I grant you that and what a shame that’d be. Cheap, shitty knock-offs would vanish from the shelves and the Interweb.
The real concern is that we NZ’ers are so rich in virtually every truly important resource . That’s the real reason we should be worried. Not because China’s tanking and will no doubt take out currency fiddlers like The Jonky Co Ltd. Who cares? I don’t. Good riddance to the worthless fuckers I say.
My real concern is that some nasty bastard’s going to realise that we’re here and take cold notice of what we’ve got.
And as for the Arabs ? They’re so fucking stupid they’ll keep slaughtering each other until the last moron drops. With their cocks in one hand, a dagger in the other and their ego’s on high alert they’ll flounder with lesser emotions like common sense, dignity, class, style and empathy until the last bullet’s fired. Then, they’ll all be dead . Died a martyr’s death in the name of Allah. They’re almost as stupid as Christians who live half lives, doomed to labour with a closed mind lest it upset their retarded beliefs while clawing their holy way to serious power to then make us bend to their vile, wretched, idiotic will.
While the greedy Chinese fill their own nests with vast and polluted excrement of their own making I’m going to walk my dog to the crystal clear river and watch the fishes and breath clean , sweet air.
Nothing to see here. Move right along.
Unfortunately, you cite above all the very good reasons we’ll wake up the day after SHTF in the haze of the hangover from the apocalpyse party in time to find a United States Marine Expeditionary unit and whatever else they can scrape together landing to enthrone the remnants of the very oligarchy which brought it all to pass.
And JK will be there to welcome them ashore for a BBQ with his mate Richie, of course.
http://www.stuff.co.nz/business/money/74867817/Mortgage-stress-faces-many-new-NZ-homeowners
new zealanders housing debt have borrowed 5 to seven times there incomes any one with half brain knows thats nuts
poor old students debt is around 14 billion
credit card debt consumer debt has ballooned out
new Zealand house hold are third most in debited in the western world America is 5th
plus FJK 100 billion on top of that
new Zealand in drowning in debt
“[quantitative] easing moves from being a momentary need to full blown addiction.”
Unless, of course, the plan always was to crash the system and destroy a financial system in which nation states have their own currencies – in which case, a few more years of this ought to do the trick quite nicely.
Yeah fuck the stock market. It’s a zero sum game at the end of the day (you need a buyer for every seller and vice versa), and factually 90% of traders lose money. Only the stock brokers are guaranteed to win, given they make money on all trades regardless if the market is up or down. The exchanges are almost all rigged nowadays, Shanghai being the worst of them. I got out of this glorified casino 9 years ago, and never looked back.
Wrong there – stock market is not a zero sum game – you are thinking of currency trading which is virtually a zero sum game.
The stock market is predicated on capital allocation and, with growth, can increase the value of the asset you buy. Unless you purchased Dick Smith shares last year……D’oh!
Nitrium – you are very wrong in your assertion that the stock market is a zero sum game – I think you may mean the currency markets being a zero sum game.
Stock markets – a place where people or companies allocate their capital according to how they best want to invest it – are certainly capable of adding value.
Your comments are ill informed and do not assist others in making considered views on the subject.
The Shanghai stock market is a VERY small slice of the overall capital markets in China – the state controls most of the capital in that country (it is called Communism) and state control rarely ends well – look at the amount of countries that have abandoned Communism and Socialism over the past couple of decades.
A little education (and less swearing) goes a long way.
Happy days !
Everything is rigged.
China’s meltdown will get worse. But no one (except insiders) will know exactly when the decision to let it fall will be made.
In the meantime the markets around the world will be propped up as necessary by governments and central banks in order to maintain confidence.
Lol. What. So no one was actually looking to see if the stuff been sent from China was actually being sold in stores.
Gham on.
Wow. Is see now why every one thinks math catcha is so annoying
I have every confidence in Prime Minister Key to deliver tax cuts for hard-working Kiwis, to keep the economy going in spite of the China hiccough.
Looking forward to saluting a new flag in March and the housing boom spreading to Hamilton, Wellington, Dunedin and Christchurch the rest of the year.
Are you for real See-More?
I’m watching David Latta and crying at the inequality in this great country and what you and your ACT cronies have done to this country with your trickle-down lies and bullshit.
Latta’s programme on poor man’s tv channel one at 10.00 pm, should be compulsory viewing for all Labour and Green politicians. Weed out any right-wingers from their parties and any others who have similar thoughts to See-More and his odious rich-prick ilk.
Watch Nigel Latta “The new haves and have-nots” See-More and then take those rose-tinted Key-o-phile glasses off and then comment again you right-wing toadie.
@ David See-More – oh dear oh dear. I almost embarrassed myself laughing so much at your sense of humour.
Keep it up Sunshine. I think 2016 is going to be the year when plenty of laughs will be needed as the world comes crashing down around our feet, seeing your dear leader running around in circles in desperation, fearing for his likely declining way of life, along with the other 1% of his corrupt, greedy cronies!
Then we can all have a good laugh eh?
Yep all said it correctly, as we are living today in a fools paradise with no real built economy paid in real efforts of man & woman.
Jonkeys planet is just all propped up by cheap easy false money in (letters of credit) so it is passed around as credit hot off the printing press of shoddy countries who delight in being able to be endowed by a milt to make their own money.
We just keep borrowing some other countries cheap printed money in credit so we will be fucked when the carrousel stops eventually.
That day we will find Jonkey & his band of swindlers have all mysteriously vanished we hope.
There is one thing no one mentions in all this. The U.S FED rate hike a couple weeks ago.
Shit, TV one is putting on an episode of REAL investigative Journalism!!!
My son turned on TV one at 10.30pm tonight 5th January 2016, and Nigel Latta was doing a good episode of the faltering NZ economy, with input from Professor Jane Kelsey our heroine, and others showing how under National the inequality is widening dramatically!!!!!
What a change as this hard hitting episode was picking on the present Government so maybe this is showing some change within TV one to again become a neutral voice for journalism???
pick it up tomorrow and watch as it was very encouraging.
Well done TV One we want to see much more of this.
That’s all very well but no mainstream television channel will admit that the entire economic-financial system is unsustainable and destructive because it is dependent on consumption of depleting resources and generation of pollution.
So the best that could be hoped for would be exposure of the lies that have characterized the Key government and promotion of a slightly different set of lies espoused by a different political party.
Advertising revenue has determined policy since broadcasting was commercialised. That will not change until the present political system collapses. And it will be far too late by then.
Sorry Cleangreen, its a one off – pretty obvious its on at 10.30 in the evening, smack in the middle of the holiday season. I bet they don’t repeat it (like everything else is) when Parliament is sitting and question time is back on P. TV. The Nation and Q & A are just a farce these days as well.
One good thing about radio in the holiday period we sometimes get better talk back hosts who relieve the useless ones we have on full time. On Radio Live we have had David Slack and Mitch Harris on the odd time and they are far better the some of the other radio hosts. Channel 3 and Radio Live are just a waste of time these days. I have started reading books at night, such a pleasure too with such a lot of great authors about.
Forget about Channel 1 – this holiday season has been a bloody disgrace frankly with the crap they put on. What are they doing with their government handout they get??
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