Unless There Is A Huge War In Korea, How Will China And The United States Explain The Crash Of Their Stock Markets On Monday?

That is why something has to happen in Korea this weekend.
Things have been brewing for a while, remember when the New York stock exchange shut down for 4 hours one day after China melted down the night before?
They said it was a technical glitch, but wall street on parade said it was because several Chinese companies were being traded on the exchange but were under review by the SEC. I think a few of them weren’t even supposed to be traded at all, black listed, and yet their stock was selling.
They shut that story up quick.
(URGENT) N. Korea deploys towed artillery to DMZ for apparent attack on S. Korean loudspeakers

Market Meltdown In Progress
This is starting to feel all “2008-ish” again.
I know, I know…these declines have been endlessly rescued by Fed officials and mysterious buying out of nowhere up to now, but this feels bigger and badder than the prior declines.
There’s more volume, and it’s very broad-based, and it’s global.
I guess now we get to find out if the HFT robots really do add the right kind of liquidity or not.
Also, good job on buying up all your equities at the market top (again) corporate America!
Lastly, it looks like oil is making a run for the $30’s here.  Three failed attempts to clear $42 have been rejected and it’s now plummeting and at $40.38


Are We Set Up For Another Black Monday?

In financeBlack Monday refers to Monday, October 19, 1987, when stock marketsaround the world crashed, shedding a huge value in a very short time. The crash began in Hong Kong and spread west to Europe, hitting the United States after other markets had already declined by a significant margin. The Dow Jones Industrial Average (DJIA) fell exactly 508 points to 1,738.74 (22.61%).[1] In Australia and New Zealand, the 1987 crash is also referred to as “Black Tuesday” because of the time zone difference.
The terms Black Monday and Black Tuesday are also respectively applied to October 28 and October 29, 1929, which occurred after Black Thursday on October 24, which started the Stock Market Crash of 1929.

All we need is some “kinetic military activities” over the weekend and the similarities would be eerie.  I’m tempted to get some gourmet popcorn and stay home from work on Monday while staying glued to my computer monitor.  Either that or order some freeze dried food.

Listen To Peter Schiff About “Black Monday”

Listen from the beginning:

For those who do not remember Peter Schiff:

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“The Dow Jones Industrial Average DJIA, -3.12% suffered its biggest weekly point drop since the worst week of the financial crisis. The Dow tumbled 531.14 points on Friday, and 1,017.85 points, or 5.8%, for the week, amid growing concerns of a slowing global economy. The Dow had tumbled 1,874.19, or 18%, the week ending Oct. 10, 2008, as the collapse of Lehman Bros. rattled global markets. On a percentage basis, this was the blue chip barometer’s worst week since the week ending Sept. 23, 2011, when growing concerns of a double-dip recession in Europe pushed the index down 6.4% on the week. ”
A Small Gift Arrives For Global Economy

China Shares Brush New Low Since Depth of Selloff

Wall Street Journal5 hours ago
Worries about China’s growth in recent days have unnerved investors across … The Shanghai Composite Index closed down 4.3% at 3507.74, just a whisker …
China stocks crash 11% in a week
CNNMoney7 hours ago
China Markets Live – Shanghai and Shenzhen finish 4-5 per cent off
South China Morning Post (subscription)7 hours ago
China stocks dive 4.27% on Friday
Shanghai Daily (subscription)8 hours ago

China money market stabilises after c.bank injections, more easing expected

Reuters – ?9 hours ago?
The spread in the five-year credit default swap rate on Chinese sovereign debt rose 0.47 percent to 105.16. Key money rates at a glance: Volume-wei Previous Change (bps) Volume ghted day (%) average rate (%) Interbank repo market Overnight 1.8188 …
Finance Ministry to seek record ¥26.05 trillion for debt-servicing in fiscal 2016The Finance Ministry plans to demand a record ¥26.05 trillion for debt-servicing under the government’s general-account budget for fiscal 2016, up 11.1 percent from the amount it secured for the current year, it was learned Friday.This reflects the increasing balance of outstanding Japanese government bonds, according to informed sources.

Japan Trade Deficit Grows To Y268.055 Billion In July

Dispatch Times11 hours ago
That was well shy of forecasts for a deficit of 53.0 billion following the downwardly revised 70.5 billion yen shortfall in June (originally -69.045 billion yen).
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    The Fiscal Times19 hours ago
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    The Standard & Poor’s 500 fell to lowest level since February 2014

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Commodity Rout Erases $2 Trillion From Stock Values

Bloomberg15 hours ago
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    US credit signals warning for risk assets

    Financial TimesAug 20, 2015
    Investors are demanding a greater premium for owning the debt of US companies in a sign that weakening growth prospects for China and sliding commodity …

GLOBAL ECONOMY-Disappointing business surveys intensify growth fears

Reuters – ?5 hours ago?
LONDON/BEIJING, Aug 21 (Reuters) – Signs China’s slowdown is getting worse and weak growth in Europe have further damaged the outlook for the global economy, sending stocks and commodity prices reeling on Friday. China’s vast factory sector shrank …

Chinese Factory Gauge Drops to Lowest Level Since March 2009

Bloomberg13 hours ago
A Chinese manufacturing gauge fell to the lowest in more than six years, suggesting the economy will need further policy support to stem a deepening slowdown …

Treasuries Roar as Disinflation Specter Haunts Global Economy

Bloomberg8 hours ago
Treasuries headed for the biggest weekly gain in five months as slumping commodities … “Doubts about Chinese growth fueled concern about slackening global …

Traders Sound Policy-Error Alarm as Inflation Outlook Dives

Bloomberg2 hours ago
… trillion of its own bond purchases and China devalued its currency — is even more … Two-year Treasury breakevens fell to within a quarter-percentage point of …

GLOBAL MARKETS-Grim China data caps worst week of year for

Reuters4 hours ago
China Aug PMI shrinks at fastest pace in almost 6-1/2 yrs. * Dollar extends losses as safe-haven U.S. debt yields fall. * Gold, Treasuries up on safe-haven bid.

Mexico central bank sells $123 mln after peso hits record low

Reuters1 hour ago
MEXICO CITY Aug 21 Mexico’s central bank said on Friday it had sold $123 million of $200 million offered after a sharp drop in the peso to a record low …

Ringgit Drops to 17-Year Low as Falling Brent Crude Dims Outlook

Bloomberg11 hours ago

Malaysia’s foreign-exchange reserves fell further in the first two weeks of August, reducing the cent

Nigeria’s Central Bank Vows To Disappoint Speculators Seeking

Naija247news21 hours ago
Nigeria’s central bank vowed to fight off speculators taking bets that the naira will be devalued after Kazakhstan became the latest country to abandon control of …
  1. Nigeria restructures bank loans to cash-strapped states

    Reuters1 hour ago
    ABUJA Aug 21 Nigeria has restructured short-term commercial bank loans to its cash-strapped state governments into longer-term sovereign bonds as Africa’s …
  1. Turkey Bond Weekly Slide Shows Growing Pressure for Higher Rates

    Bloomberg2 hours ago
    Turkish bonds extended their biggest weekly slide in six months as investors speculated the central bank will be forced to raise borrowing costs to shore up the …

    Turkey Downgrade Already in the Price as Bonds Trade Like Junk

    Bloomberg9 hours ago
    Of the six countries whose foreign debt Moody’s Investors Service rates at the level just below Turkey’s, five have lower yields. Only Russia is higher, meaning …

    Indonesian Stocks Slide Into Bear Market as Economy Stumbles

    Bloomberg5 hours ago
    The weak currency is limiting scope for the central bank to cut interest rates, while tumbling commodity prices and a deepening economic slowdown in China …

    Ukraine Faces Sunday Payment Deadline as Nomura Sees Deal Near

    Bloomberg2 hours ago
    … comes due in two days that will shed light on the government’s progress in negotiating a $19 billion debtrestructuring with creditors led by Franklin Templeton.

    EconomyBrazil inflation rises to 11.5 year high

    Financial Times – ?2 hours ago?
    With inflation now running at more than twice the centre of the central bank’s target range of 4.5 per cent, the pressure is on for policymakers to keep rates high even if – as they have signaled in the minutes of their last meeting – the tightening

    Brazil Has Yet Another Big Mess on Its Hands After State Default

    Bloomberg4 hours ago
    … states and municipalities swelled to about 12 percent of Brazil’s economy at the end of May, the highest in more than five years, according to central bank data.

    Brazil Stocks on the Verge of Bear Market as Real Leads Losses

    Bloomberg2 hours ago
    The rout in developing nations put Brazilian stocks on the brink of a bear market as Latin America’s largest economy heads toward the worst recession in 25 …
    1. Argentina’s Black Market Peso Falls to Weakest in 10 Months

      Bloomberg20 hours ago
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      Taiwan records net financial outflow for 20th consecutive quarter

      Focus Taiwan News Channel8 hours ago
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      Taiwan business circles call for further depreciation of NTD

      WantChinaTimes11 hours ago
      … has been experiencing deflation, he said during the Third Wednesday Club, a Taiwanese business community where business heavyweights meet for a noon …

      Taiwan’s manufacturing sector output projected to fall this year

      WantChinaTimes7 hours ago
      In the second quarter of the year, the output of the local manufacturing sector totaled NT$3.33 trillion(US$102 billion), down 9.21% from a year earlier and the …

      Sharp China factory slowdown in August raises global growth fears

      Reuters7 hours ago
      BEIJING Worries of a deepening China economic slowdown intensified on Friday after a private survey showed the factory sector shrank at its fastest rate in …

      Japan’s Finance Minister Warns China on Currency Moves

      ABC News8 hours ago
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      Talk of widespread deflation across world on marketdevelopments

      Irish Times10 hours ago
      Despite the recent fall in oil prices, the devaluation of the Chinese yuan and the drop in emerging market currencies, fears of a world deflationary spiral seem …

      Sky-high student rents give poor pupils a free lesson in inequality

      The Guardian6 hours ago
      It used to be that penalising poor students with debt was seen as anathema. … loans and grants, which has to be made up through work or, more likely, debt.

      Indonesian Stocks Slide Into Bear Market as Economy Stumbles

      Bloomberg6 hours ago
      The weak currency is limiting scope for the central bank to cut interest rates, while … That’s still almost twice as expensive as the MSCI Emerging Markets Index.

    Indonesians feel heat of chilli price spike, blame Jokowi’s policies

    The Straits Times19 hours ago
    Agriculture Minister Amran Sulaiman said 2 trillion rupiah had been allocated for this year to carry out dam building in dry areas and the work was ongoing.

    Kospi Sinks to Two-Year Low as Won Declines Amid Korean Tensions

    Bloomberg12 hours ago
    The government will stabilize financial markets if provocations from the North or … peninsula increase as they don’t bode well for the currency and stocks,” said … Korean equities this month amid a selloff across emerging markets ahead of a …

Draghi’s Post-Holiday Inbox Stuffed With Trouble for Policy

Bloomberg7 hours ago
Deflationary pressures coming from China, emerging markets and the decline of commodities’ prices are making it harder for the ECB to hit its inflation target.” …

EM rout spreads to Korea and Japan markets

Financial Times – ?14 hours ago?
The global sell-off was triggered by fresh concerns about the health of the global economy, along with volatile oil prices and China’s devaluation of the renminbi. The latter has increased concern that a primary engine of the global economy is spluttering.
  1. Fitch says fiscal, political issues weigh on Brazil rating

    Reuters2 hours ago
    … a reduced government savings target and worrying debt dynamics, are putting … the country’s sovereign debtrating, Fitch Ratings’ Brazil head Rafael Guedes …

India’s Rupee Posts Biggest Two-Week Decline Since August 2013

Bloomberg3 hours ago
India’s rupee posted its steepest two-week drop since August 2013 as global funds cut holdings of local stocks amid a deepening emerging-market selloff.

India’s Rupee Posts Biggest Two-Week Decline Since August 2013

Bloomberg5 hours ago
India’s trade deficit reached $12.8 billion in July as overseas shipments dropped 10.3 percent from a year earlier, official data showed after the close of markets …

Russia Hones Rescue Tool for Firms Too Hopeless, Too Big to Fail

Bloomberg8 hours ago
Russia is priming a rescue mechanism for companies on the verge of bankruptcy, … agreed to provide loan guarantees of 16.7 billion rubles to Russian tank and …

Greek bonds rally on hopes of QE buying

Financial Times4 hours ago
Greek government bonds, pariah of global markets for much of this year, are back in favour once again as investors bet that the country’s latest rescue deal has …

Special Report: US banks moved billions in trades beyond CFTC’s

Reuters3 hours ago
The U.S. derivatives market has shrunk but remains large, with outstanding contracts worth $220 trillion at face value. And the top five top banks account for 92 …

Illinois hit with downgrades as Springfield goes more than 50 days

STLtoday.comAug 20, 2015
When the budget’s delay prevented tax money from being transfered into its debt– service fund, S&P this month reduced its rating by seven notches. That caused …

Lake Mead’s Water Sinks to Lowest Level Since 1930s

Yahoo News3 hours ago
The reservoir can hold 9.3 trillion gallons (36 trillion liters) of water at maximum capacity. Most of the water trickles down from surrounding mountains as …
China woes add to Asia FX perfect storm; Korea tensions hit won
In-DepthTHE BUSINESS TIMES9 hours ago

Battered Italian economy forced to sell off marinas on sought-after

Telegraph.co.uk22 hours ago
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    Bloomberg3 hours ago
    Puerto Rico is running into resistance as the commonwealth tries to sell $750 million in bonds while crafting a debt-restructuring plan that would likely leave …
    1. CSN Bonds Tumble to Record as Distressed Steelmaker’s DebtGrows

      Bloomberg20 hours ago
      Bonds of Cia. Siderurgica Nacional SA, the worst performer among junk-rated raw-material suppliers in emerging markets, fell to a record low as its debt burden …

Turmoil in Financial Markets Worsens on China Manufacturing Data

Bloomberg14 hours ago

Equities in Hong Kong, Indonesia and Taiwan entered bear markets and junk bond yields globally rose to the highest since October 2012. Oil was set for its ..

  1. China’s top listed coal producers posts weak H1 results, oversupply

    Reuters Africa3 hours ago
    China Shenhua Energy Co Ltd’s net profit in the first six months fell to 13.07 billion yuan ($2.05 billion) and China Coal Energy Co Ltd posted a net loss of 1.07 …
    1. From Russia to Iran, the consequences of the global oil bust

      Washington Post19 hours ago
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    SC Pension Fund’s Worth Falls as Investments Don’t Keep Up

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I didn’t say that it was a nice gift:


13 thoughts on “Unless There Is A Huge War In Korea, How Will China And The United States Explain The Crash Of Their Stock Markets On Monday?”

  1. There will be a bounce next week. Most likely on Monday. That is the nature of crowd behavior as shown in technical analysis. The stock market is overbought, the bull market has been going for 7 years. These bear and bull cycles are normal. Not the end of the world. Many people had lost money when gold, silver, corn, and oil collapsed. It wasn’t the end of the world.

    • Cyclical realities don’t sell newspapers or get eyes on senational websites though, so rational players like you and I are losers here while shitwipe “news” sites like this throw gas on the fire.

    • Righto. The 7-year cycle of boom/bust. We are at the bust. Next stop…Boom!
      Take your profits now. Wait out the bust. Buy in at the ground floor for the next 7-year boom ride up!

  2. When the media talks about “the economy”, they aren’t referring to the place most of us sweat out a meager living. That market died 20 years ago. Instead, they mean the elite club of the one-percenters, who have made record returns on the artificial inflation of the stock market. The problem with such Ponzi schemes, is the suckers eventually wake up to the con and refuse to play anymore. In the case of the American consumer (70% of the real US economy) that means no one can afford to buy anything. No Wal-mart crap made in China, no GMO frankefood from McDonald’s, and no overpriced houses or cars. Half the country lacks the credit rating to borrow for those things, anyway. We have experienced a generation of hyper-leveraged pump and dump “investment” by the .001% that has done nothing but suck the lifeblood out of the entire global market. Nearly 7 billion people have been snookered so a few hundred families can live like emperor Caligula. Look to Venezuela to see what happens when the currency defaults and the government can’t do squat because they’re broke too.

    • Right on the money, or what there used to be of it. The American consumer is toast and that is the one driving force that could have and used to pull the economy and the country up by its boot strings. cutmon in his comment above I don’t believe understands this important aspect of the true state of the us economy. We are done. McPoison and wal-junk are even suffering. that alone should, to an awake person, spell disaster when the gimmethats can’t buy that trash. those .001% are about to experience what we all have come to accept. No, we are all going to have to take a bite of this s— sandwich. pray, prep and protect ’cause hell is beating down the door.

  3. It is called devalue China Yuan. Nothing to do with Korean Peninsula or Next Korean War. If next Korean War happens it will be WW.III and China and the USA has nothing to explain because they would be at War!!!!!

  4. It’s a cycle that’s all just a cycle do you understand ? 6.4 yrs. Nothing else but a head fake before the Govt. bond market tanking and the market preparing for new highs, that’s all. DOW heading for new highs !

    • not even close to reality because this time it is different. You can believe it is all good and just go on partying like tomorrow (or any day in the near future) will be the same as it was 6.4 years ago, or you can pull your head out of sand, quit drinking the Kool-Aid and with an open mind and eyes see the hell that is unfolding as folks (like you it seems) play golf while the world around them is burning to the ground. I truly pray you get a clue and if you aren’t single and have children, you damn well better grab hold of reality for their sake. You are responsible for them and their safety.


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