The word “cascade” comes to mind. China is the world’s second largest economy. The continued crash has real implications for the rest of the world economically and probably politically. What those implications are at his point we do not know but it is certainly time now to keep one’s eyes on the horizon.
(From The Globe and Mail)
Chinese shares slid more than 8 per cent on Monday as an unprecedented government rescue plan to prop up valuations ran out of steam, throwing Beijing’s efforts to stave off a deeper crash into doubt.
Major indexes suffered their largest one-day drop since 2007, shattering three weeks of relative calm in China’s volatile stock markets since Beijing unleashed a barrage of support measures to arrest a slump that started in mid-June.
What is particularly interesting about the China crash is that it reflects the market overwhelming the interventions of the central planners. It should be remembered that the rise in US stocks has been manipulated by central planners also.