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Business/Finance See other Business/Finance Articles Title: Black Monday Black Monday by Stephen Lendman As this is written, US financial markets havent opened. Dow, S&P and Nasdaq futures indicate steep opening declines. European bourses are down about 3% - following continued sharp Asian market sell-offs - in lockstep with what Reuters called the Great fall of China. The Shanghai Composite fell another 8.5% after last weeks steep declines. More on this below. So far, its too soon to know if whats happening is what the late longtime market expert/Progressive Radio News Hour guest Bob Chapman warned listeners and readers about in his twice-weekly International Forecaster reports. There is absolutely no way a financial crisis can be avoided, he said. Fragile isnt the word, for whats happening. The operative (word) is abject failure, headed for eventual collapse. Untenable political and financial decisions put US and European economies on a collision course with disaster. Bailouts and market manipulation delay the inevitable. So does money printing madness - facilitating out-of-control speculation. The longer it continues, the more disastrous the consequences. Chickens eventually come home to roost. Chapmans insight is sorely missed now. Hindsight is the best foresight. The fullness of time will tell if this is the moment he predicted. So far, Dow and S&P declines dont approach previous sell-offs percentage-wise. On October 19, 1987, the Dow crashed 22.61% (a bear market in one day) - compared to last Fridays 3% decline and Thursdays 2% drop. On October 24, Wall Streets 1929 crash began - the Dow declining 11% on whats called Black Thursday, followed by other steep drops. Before things ended in July 1932, the benchmark average lost 89% of its peak value. It took an entire generation to recoup. World equity markets have been in bubble territory longterm - artificially elevated by money printing madness. Is Chinas crash prelude to global turmoil? The Financial Times said the Shanghai Composite had its worst day since February 2007 on Monday. It called trading tumultuous. Chinas Xinhua news agency called it Black Monday. The rout spread to other Asian markets and Europes. Londons FTSE fell to its lowest level since June 2013. Mondays moves left Europes main stock benchmarks on track for their worst monthly declines since October 2008, at the height of the financial crisis, said the FT. Chinas currency devaluation two weeks ago signaled economic weakness. Its economy might be in worse shape than previously thought, said the FT. Its been the worlds leading growth engine. Any slowdown has huge implications for other world economies. IG market analyst Angus Nicholson called its equity market in free-fall, (its) banking system increasingly starved of liquidity, rising capital outflows and a rapidly slowing economy. When China sneezes, the world catches cold. On Monday, an astonishing 900 of 1,114 listed Shanghai Composite stocks were down nearly 10%. Just five equity listings rose in value. The days understatement came from Credit Agricole analysts saying: Caution remains warranted - highlighted by the Wall Street Journals online front page reporting: Markets Rout Continues; China Shares Fall 8.5%; Oil Hits New Lows. The rout in financial markets showed no sign of easing Monday, as global stocks and commodities extended last weeks steep declines. Mining Shares Sink Deep China Shares Erase Years Gain Oil Tumbles to Fresh Lows Gold Falls, Despite Safe-Haven Status Copper, Aluminum Tumble to Fresh Lows Russian Ruble Sinks to Seven-Month Lows Not a pretty picture. Market turmoil is real. How severe for how long remains to be seen. Sharp reversals accompany steep declines. No one knows if whats happening signals the beginning of global markets crashing. Only Cassandra was good at calling tops and bottoms. The fullness of time will explain best of all. Stephen Lendman lives in Chicago. He can be reached at lendmanstephen@sbcglobal.net. His new book as editor and contributor is titled "Flashpoint in Ukraine: US Drive for Hegemony Risks WW III." http://www.claritypress.com/LendmanIII.html Visit his blog site at sjlendman.blogspot.com. Listen to cutting-edge discussions with distinguished guests on the Progressive Radio News Hour on the Progressive Radio Network. It airs three times weekly: live on Sundays at 1PM Central time plus two prerecorded archived programs. Post Comment Private Reply Ignore Thread Top Page Up Full Thread Page Down Bottom/Latest Begin Trace Mode for Comment # 1.
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