ALERT: Massive Chinese Stock Slide Continues, & Top Insights

Chinese shares slide as Beijing’s moves to calm markets fall short

Chinese shares plunged Thursday, even as Beijing grasped for solutions to stem the selling, including relaxing rules on the use of borrowed funds to invest in stocks. That effort comes as a surprising turnaround given concerns that margin lending fueled a too-hot rally over the past year.

The Shanghai Composite SHCOMP, -3.48%  closed down 3.5% while the smaller Shenzhen market 399001, -5.32%  was down 5.6%. The ChiNext board399006, -3.99%  , composed of small-cap stocks, sank 4%. Even after losing nearly a quarter of its value from a mid-June high, China’s main stock market has almost doubled in value over the past year.

In the minutes before closing, China’s blue chips staged a minirally, which some analysts put down to buying from government-backed funds. Stocks in large, state-owned firms benefited most, with PetroChina Co. nearly hitting its daily upward limit of 10%, rising 8.8%, and China Petroleum & Chemical Corp., or Sinopec, up 5.5%. Just 60 stocks on the Shanghai Composite gained, while more than 900 stocks fell.

In a rare move late Wednesday, Chinese regulators set in motion draft 

Puerto Rico poses bigger threat to U.S. investors than Greece

But U.S. investors would actually have much more to lose in a potential Puerto Rican default than in a Greek default. The reason is that Puerto Rico’s bonds are trading in the U.S. municipal bond market, while the vast majority of Greek debt is in the hands of the International Monetary Fund, the European Central Bank and eurozone countries.

Canada Surprise April Contraction Opens Door to 2nd Rate Cut

Canada’s economy unexpectedly shrank for the fourth month in a row in April as oil and mining slumped, opening the door to a second interest-rate cut from the central bank this year.

White House: No federal bailout for Puerto Rico

The White House threw cold water Monday on the notion of bailing out Puerto Rico from its financial crisis, instead urging Congress to consider changing the law so the island can declare bankruptcy.

China Rate Swap Drops Most This Quarter Since 2008 as PBOC Eases

China’s benchmark interest-rate swap dropped this quarter by the most in six years as the central bank stepped up monetary easing to combat an economic slowdown.

Puerto Rico Bonds Fall to Record Low as Debt Crisis Worsens

Prices on some commonwealth securities continued to fall Tuesday. General-obligation bonds maturing July 2035 traded at an average price of 65.8 cents on the dollar, the lowest since the bonds were first sold at 93 cents in March 2014. The price has dropped 15 percent since Friday, according to data compiled by Bloomberg.

Drugmakers Say Greek Unpaid Bills Total $1.2 Billion

Drugmakers operating in Greece said they’re owed 1.05 billion euros ($1.2 billion) by the government for medicine supplied to hospitals and the state social insurance fund.

California Drought Taking Serious Toll On Aging Sewer System In San Francisco

Few things in America have lasted 150 years. San Francisco’s sewer system is a working relic but one that works

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Greece faces supply-chain crunch as crisis deepens

Top Weekly Ideas and Insights

Peak Everything Lecture

Cornell University

J.P. Morgan’s Dimon Warns HUGE Crisis Lurking

J P Morgan's Dimon Warns Next Crisis Will Bring Even More Volatility

Wall St. - Who will be swimming naked next time?

LONDON (Market Watch) you ain't seen nothing yet, when it comes to market wreckage from a financial crisis, according to J P Morgan's Jamie Dimon. In his annual letter to shareholders, the bank's chief executive warned " there will be another crisis" - and the market reaction could even be more volatile, because the regulations are now tougher.

It's Going To Be Worse? 

He argued the crackdown on the financial sector, added to more-stringent requirements for capital and liquidity, will hamper banks' capacity to act as a buffer against shocks in the financial markets. Banks could become reluctant to extend credit, for example, and less likely to take on stock issuance through rights offering, which would essentially create a shortage of securities. Read More

Man the Lifeboats! 

Ukraine Sets Laws To Prevent Crash?

The Russians Are Coming

Law enacted in Ukraine aiming to prevent financial collapse

The law was upheld by the Ukrainian parliament alongside anti-crisis amendments to the state budget for 2014 on March 27, and is part of a package of laws which the International Monetary Fund and other international organizations are ready to support.

EU Economist

The law sets VAT and profit taxes at 20% and 18%, respectively, reversing plans to lower them; introduces a progressive tax scale of 15%, 20% and 25% on passive annual incomes exceeding UAH 20,000 starting on July 1, raises excises on and payments for the use of natural resources, and restores the 0.5% tax on currency exchange operations.It also reduces some payouts, including the benefit due to mothers after childbirth, and also introduces personnel cuts at law enforcement services and prosecutor's offices.

Source:

Here' s absolute proof  that economists are madmen - they are so disconnected from reality that they think they can outlaw or prevent economic collapses. What next? Perhaps they can renegotiate the  laws of thermodynamics .I would not put it past these guys to come up with such a policy.

Anyway we come across a lot of articles, reports, and writings around the world but this has to be the most ridiculous idea we have seen in along time. No wonder this country is in trouble.- they can't even figure out how to do a real economic/business plan with the resources they have.

They are sure to on our "watchlist " for a long .long. time.



Investors' Insights
April 4, 2014