The Dow Jones plummeted more than 600 points on Monday morning over fears that a massive Chinese property bubble might create a new ‘Lehman Brothers’ moment.
As Fox Business reports:
The Dow Jones Industrial Average plunged 586 points, or 1.7%, while the S&P 500 index and the Nasdaq Composite index declined 1.69% and 1.99%, respectively.
Chinese real estate developer Evergrande’s shares tumbled more than 15% Monday amid worries the company will not be able to make a debt payment later this week.
Some market watchers have called Evergrande China’s “Lehman Brothers moment,” drawing comparisons to the collapse of the U.S. investment bank, which began the 2008 financial crisis.
Hong Kong’s Hang Seng index tanked 3.3% while China’s Shanghai Composite was closed for holiday. The selling spilled over into Europe, where Germany’s DAX 30 fell 2.%, France’s CAC 40 lost 2.39% and Britain’s FTSE 100 dropped 1.61%.
https://twitter.com/EmbryEthan/status/1439961534189301763
If the property giant does default on its massive debt there is a risk of a potential worldwide financial contagion spreading, as Marketwatch explains:
But in the event of liquidation, there would likely be a “high degree of contagion,” they warned. The spillovers would occur, they said, through three channels:
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Investors getting extremely low recovery values, something which would lead to a material loss of investor confidence in the broader property sector and Asia high-yield offshore market and create spillover into the broader Chinese financial assets.
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A domino effect of credit events, given that both banks and nonbanks with large exposures to Evergrande could potentially go under or be forced into restructuring. This would again create spill over into other Chinese financial assets and drive underperformance of financials in particular across both [developed market] and [emerging market] credit/equity markets, led by those names with direct exposure either to Evergrande itself, its subsidiaries or its creditors.
MAkes you wonder if this is a forced plan to shut down the banks and confiscate your lifes savings…
It Certainly could be. LET’S FACE IT, They can do ANY DAMNED THING THEY WANT TO. THEY ARE IN CONTROL OF EVERYTHING BUT OUR MINDS,
and they are working Diligently on THOSE, Daily.
And it’s working. They have brain washed enough people already to take over the country.
No Experience Needed, No Boss Over ii R Your Shoulder… Say Goodbye To Your Old Job! Limited Number Of Spots Open… 𝐅𝐢𝐧𝐝𝐉𝐨𝐛𝐬𝟒𝟕.𝐓𝐊
I think they already accomplished that with the mush brains.
Why do you think so many have rolled up their sleeves???
Fear and control is the name of the game.
Lock and load! Our only hope.
The 2nd Amendment was ratified to grant to the American people the means to unseat tyrants from office. We were told that it’s our responsibility to maintain a “Free State”. As we’re beginning to notice, our State isn’t free. Indeed, our public servants inform us daily that our Bill of Rights will be dismantled.
What does this have to do with Evergrande? Pay attention!
I thought the Dems were the main controllers?
New world order!!!!
Build back better!!!!
What do you think this is????
Like in 2009? Get real and stop living in fear.
Sometimes the Market Computers intervene, and stop the trading process to prevent a collapse. The banks are most likely in charge of that App.
Most of my investments are not in wal street, yet I don’t want it to fall. But, I would love for the chinese to fall. They are buying up American land which should be illegal. I am sick of them. They know the American people don’t want to buy from them so they sneakily put up warehouses, etc here and put American flags on there items saying Product of America. We should start arresting them and make them want to leave our land. Down with them & the treasonous politicians that are in bed with them.
LET IT FAIL! Didn’t we learn from past bailout experiments and lame thinking?
F Joe Biden, F Joe Biden, F Joe Biden (love those college football fans!
Is anyone really surprised at Biden’s actions and behavior? I think he is already bowing down to his Chinese “bankers” through blackmail. He owes China and other places around the globe big time for his “nefarious” behavior over the entire time he has been in politics. The man is and has conducted himself like a “Mafia Don” for over 40 years.
Gambling (State Lotteries, Casinos being built on every vacant lot, Online Casinos..)
Drugs (Pot is now legalized)
Alcohol (Watch how many booze ads are aired)
Prostitution (Pornography, Child Sex Rings, Massage Parlors)
Sanctioned Killings of Enemies (The Clinton Body Count)
I’d say you were correct.
When ya play on the bleeding edge, sometimes ya bleed. Nobody remembers 1929?
My father remembers that year. He was 7 years old, with a bad leg, and his mother was going to divorce his father. During the Depression, at the age of 16, he was suddenly abandoned in the city of San Francisco, and told he had to support himself. Those were very tough times, but those were very tough people.
600 points is hardly a crash. Market corrections happen. The wise investor can figure out when these corrections will occur, and sell their stocks before they lose value. The media makes money by exaggerating things, making mountains out of molehills. This would be a sterling example.
Most people on this site live in fear and are filled with paranoia that every action exposes them to doom. September is one of the worst months for the market. maybe this is a correction, but overall economy is doing really well.
George Soros started the ball rolling this a.m., saying Blackrock & “others”could be stuck holding the bag if China defaults on this. We all know how concerned Soros is with U.S. “policy”, so he’s just waiting for a global panic to set in. Then the “haves” can have it all while the “have nots” grovel in poverty.I just wish that God would pull the plug on this rotten Marxist, and the sooner, the better.
Soros is Jewish. They had a Holocaust. So, nobody can say anything bad about them.
The media will continue to find various reasons for poor market performance, but it wouldn’t be so unstable and subject to being negatively affected by any problem that comes along if it weren’t for the extremely damaging Biden economic policy, which is no better than the Obama-Biden economy policy which it mirrors.
So far I’m a lot better off since he was elected. But same with Trump. People have gotten rich off the stock market with both Trump and Biden. Trump is the only president to leave office with fewer people employed than when inaugurated. Let’s wait and see.
The Stock market will crash under the disastrous running of the Country under the CCP (Biden/Harris) Then President Trump will Officially introduce NESARA/GESARA and no, yuo wont lose your money, yuo are simply changing from a corrupt Feds System (Privately owned by the Rothchild’s)and onto the Gold backed currency. All will benefit as long as yuo dont cheat You cannot cheat with the Quantum System 🙂
Wish there was an edit button
It’s possible, but you must understand who’s investing in stocks, and how our government bails out investors and banks when those ‘crashes’ occur. When I worked for the government, there was a scheme to have our retirement funds invested in the Stock Market. They called this the “G Fund”, and promoted the idea among folks approaching retirement age, claiming they could make a killing with their investments (The Dot Com Boom was in full swing) I read the brochure, and I decided to forgo risking my nest egg. Several budding J. P. Morgans among my colleagues were telling me how they were cleaning up with their stocks, and boasted that they would retire in style. Not long after the scheme commenced, a major correction occurred, and those same aristocrats had their investments wiped out. Americans who aren’t potentates have to be careful with their savings and investments. No one is going to throw them a financial rope when their dreams are shattered by unexpected market corrections.
So glad it happened to our adversary China and WallStreet. Any company besides Lehman and I know who they are deserve to loose some bucks. Believe me they all have plenty. You and I should be so fortunate as we work hard every day like cops firemen military nurses.