Chinese stock markets plunge over fears share prices are unsustainable
China’s Shanghai composite index falls more than 7% in mass sell-off after six months of frenetic buying driven by a state clampdown on property investment
Chinese stock markets plunged on Friday as investors rushed to sell over fears that frenzied buying in recent months had sent share prices to unsustainable levels.
The Shanghai composite index, which reached a post-crash record of 5,166 earlier this month, has since lost nearly 1,000 points, down more than 7% at the last session to 4,193. The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 7.9%.
Banks will remain shut until at least after a July 5 referendum called by Prime Minister Alexis Tsipras on whether to accept austerity in exchange for a European bailout, Kathemerini newspaper reported, citing unnamed sources.
Paul Craig Roberts joins the show today to discuss Greece’s possible credit default and its implications, the ongoing tensions between Russia and America, and the U.S. bond market bubble
"The Greek authorities have asked for a month extension. But in that month there can be no disbursements," he said. "How does the Greek government think that it will survive and deal with its problems in that period? I do not know," Dijsselbloem said.
Previous sharp drops in the stock markets this year have been quickly countered by optimistic statements in state-controlled media. But Saturday’s moves, which included the fourth reduction in interest rates since last November, were unusual in so closely following a stock market nose-dive.
The BP report also shows China’s energy demand is growing at the slowest pace since the Asian Financial Crisis in the 1990s as the communist nation suffers a slowing of its economy and tries to reduce its reliance on heavy industry, Bloomberg reported
Collapse, Part 5: Things Fall Apart
It is impossible to wean an economy that relies on debt and leverage for its "growth" of excessive debt and leverage.
The phrase famously appears in William Butler Yeats' 1919 poem, The Second Coming:
Turning and turning in the widening gyre
The falcon cannot hear the falconer;
Things fall apart; the centre cannot hold;
Mere anarchy is loosed upon the world,
The blood-dimmed tide is loosed, and everywhere
The ceremony of innocence is drowned;
The best lack all conviction, while the worst
Are full of passionate intensity.
More Leading Global Headlines
ISIS Plans To Launch Terror Attacks Across India
Top Weekly Ideas and Insights
"Peak Everything"
Cornell University
