China Crashes Most Since 2007 Amid "Panic Sentiment"; Over Half Stocks Suspended, PBOC Promises "Liquidity Support"

Submitted by Tyler Durden on 07/07/2015 - 21:19
*CHINA TRADING HALTS LEAVE 54% OF ENTIRE STOCK MARKET FROZEN
*CHINA'S SHANGHAI COMPOSITE INDEX FALLS 8%, MOST SINCE 2007
There's "panic sentiment" currently in our stock market with "unreasonable selling" pressure - China's stock regulator spokesman.
*PBOC TO KEEP SUPPORTING CHINA SEC. FINANCE FOR STABLE STK MKT

A Quarter of Chinese Stocks Aren’t Trading: Shades of 1929 and 1987 Markets

by Pam Martens, Wall Street on Parade:
If you happened to be sitting behind a Wall Street trading terminal on Tuesday, October 20, 1987, you are likely having heart palpitations reading about what’s currently happening in the Chinese stock market. Tuesday, October 20, 1987 was the day after Black Monday, the infamous U.S. stock market crash that shaved 22 percent off the Dow Jones Industrial Average in a single day.
Only those working behind a trading terminal the day after the crash can truly appreciate the horror of having customer orders to sell their stock and having no idea as to the price at which the stock was trading despite the market being technically open for trading. On Tuesday, October 20, 1987, the U.S. stock market was less of a market and more of a crapshoot. So many stocks had been halted for trading that futures markets in Chicago had to stop trading since so many of the component stocks in the futures indexes were simply not trading in New York, thus their actual prices were unknown.
The official report on that episode, known as the Report of the Presidential Task Force on Market Mechanisms (or Brady Commission Report), referred to that Tuesday market as “dysfunctional,” writing:
Read More @ WallStreetonParade.com

The Greferendum Shocker: Tsipras "Intended To Lose" And Is Now "Trapped By His Success"

Submitted by Tyler Durden on 07/07/2015 - 18:32 Call it "game theory" gone horribly "chaos theory."
The Greek prime minister who decisively and unexpectedly pushed for a referendum on the last weekend of June, "never expected to win Sunday's referendum on EMU bail-out terms, let alone to preside over a blazing national revolt against foreign control." He got just that, and in a landslide vote at that even though "he called the snap vote with the expectation - and intention - of losing it."

Americans With Retirement Accounts Beware: If Our Government Does What China Just Did You’ll Be Wiped Out

by Mac Slavo, SHTFPlan:
We’ve previously warned that elements within the U.S. government have been feverishly working to take control of all retirement assets in America. The reasoning, of course, is that the government can manage your personal finances better than you can. They’ve already begun plans to have workers invest their earnings directly into government-managed funds, but at some point, should we get into trouble, they may look to seize those assets outright and put them under central control. Like the idea of socialized, centrally-managed health care, this sounds like an impossibility in the Land of the Free. However, it’s already been established, with passage of Obamacare as clear evidence, that should they want to do this, they will.
It’s a danger to be sure, but perhaps not as dangerous as what is happening in China right now. While Chinese stock markets are in the midst of a massive collapse, the Chinese have tried just about everything to halt the crash that has so far vaporized about 25% of investor wealth in under a month. Zero Hedge asks:
Read More @ SHTFPlan.com

Merkel Mocks Greece And The Referendum: There Is Money, But The Deal Is Much Harsher Now (And No Debt Haircut)

Submitted by Tyler Durden on 07/07/2015 - 16:52 GREEK PROPOSALS HAVE TO GO BEYOND WHAT BAILOUT INSTITUTIONS DEMANDED BEFORE REFERENDUMMERKEL RULES OUT DEBT 'HAIRCUT'
JUNCKER: LAST MOMENT FOR GREEK GOVT WILL BE MONDAY MORNING

China Now Risks "Financial Crisis"; Loses Could Be "In The Trillions" BofA Says

Submitted by Tyler Durden on 07/07/2015 - 21:00 The impact of a full-blown financial crisis in China, if it materializes, on the economy would likely be severe. On corporate earnings, other than the drag from slower growth, many companies may have to book stock-market related losses over the next few quarters by our assessment. Stock lending related losses could run into Rmb trillions.

Presenting China's Plunge Protection Playbook

Submitted by Tyler Durden on 07/07/2015 - 20:10 Over the past two weeks, China has resorted to an eye-watering array of policy maneuvers and pronouncements in a desperate attempt to resurrect the country's margin-fueled equity bubble. Amid the chaos, Morgan Stanley — whose "don't buy this dip" call might well have been the straw that broke the dragon's back, so to speak — is out with a detailed history of Beijing's plunge protection playbook.  

Just One Chart

Submitted by Tyler Durden on 07/07/2015 - 19:20 Brace yourselves...

Europe's Spiralling Game Of Chicken - Politics Always Trumps Economics

Submitted by Tyler Durden on 07/07/2015 - 21:30 Given the weekend ’s events it bears repeating that the echoes of 1914 are growing louder and louder. We are likely embarked on the death spiral phase of a game of Chicken, just as in the summer of 1914. The stakes are, for now at least, not nearly as cataclysmic today as they were a century ago, but the social and political dynamics are eerily alike.

Congress Should Protect Itself From The Executive Branch

from Paul Craig Roberts:
Gary Hart was a good senator, an independent person. Consequently, he was eliminated with a sexual scandal. The woman was a ten, and the powers that be got rid of Hart. Better to go that way than with an airplane crash or a frame-up that leads to prison like happened to US Rep. George Hanson and others including Dan Rostenkowski, Chairman of the House Committee on Ways and Means.
Rostenkowski was eliminated by the despicable Eric Holder, a US attorney at the time who rose to become Obama’s Attorney General, proving the point that in the US government only the totally corrupt succeed. Holder’s false conviction of Rostenkowski was overturned with a pardon by President Bill Clinton. Even former Republican President Gerald Ford regarded Rostenkowski’s conviction as a fraud.
Read More @ PaulCraigRoberts.org

Why GM Is Back Below Its IPO Price - Pictures From GM's China "Parking Lot"

Submitted by Tyler Durden on 07/07/2015 - 18:05 Despite broad and deep price cuts introduced earlier in the year, GM's sales in China were roughly flat in June continuing the streak of weakness since March (when GM changed its reporting to retail sales from wholesale delivery). This is the weakest start to a year for China auto sales since 2012 and GM's share price is now back notably below its 2012 IPO price. Judging by the massive volume of cars 'parked' in GM's Shenyang Liaoning lots, it is clear that automakers learned nothing from the last "if we build it, they will come" channel-stuffing inventory surging dysphoria that, among other things, led to their last bankruptcy... if only Chinese buyers would take up the credit terms like Americans.

Disorderly Collapse - The Endgame Of The Fed's Artificial Suppression Of Defaults

Submitted by Tyler Durden on 07/07/2015 - 17:40 Nobody apparently learned much from the whole bubble-bust affair as banks and financial firms are at it again, this time in corporate debt. The artificial suppression of default, in no small part to perceptions of those bank reserves under QE (just like perceptions of balance sheet capacity pre-crisis), has turned junk debt into the vehicle of choice for yet another cycle of “reach for yield.” In the past two bubble cycles, we see how monetary policy creates the conditions for them but also in parallel for their disorderly closure. It isn’t money that the FOMC directs but rather unrealistic, to the extreme, expectations and extrapolations. Once those become encoded in financial equations, the illusion becomes real supply.

When Does The Chinese Carnage Stop? (In 3 Charts)

Submitted by Tyler Durden on 07/07/2015 - 17:15 Chinese investor psychology has shifted. Period. The more the government intervenes to lift stock prices explicitly, the more local and professsional leveraged investors will use any strength to unwind their positions (profitably or unprofitably). The question is - when does this carnage stop?

Thoughts On Greece ... From Zimbabwe

Submitted by Tyler Durden on 07/07/2015 - 16:29 "Greek banks closed for a week, cash withdrawals from ATM’s restricted to a limited amount per person per day is all too familiar to Zimbabweans. We know exactly how this feels: the fear, anger, despair and disbelief that goes with watching your life savings evaporating and knowing there’s nothing you can do to save it."

Dow Swings 670 Points In V-Shaped-Hope-Recovery Despite Commodity Carnage

Submitted by Tyler Durden on 07/07/2015 - 16:05

Obama Calls Merkel, Reinforces IMF Case Of Debt Haircut

Submitted by Tyler Durden on 07/07/2015 - 15:26 The President and German Chancellor Angela Merkel spoke by phone this morning about Greece. The leaders agreed it is in everyone's interest to reach a durable agreement that will allow Greece to resume reforms, return to growth, and achieve debt sustainability within the Eurozone. The leaders noted that their economic teams are monitoring the situation in Greece and remain in close contact.

Gold And Silver Are Paper-Slammed – Is The System Collapsing?

by Dave Kranzler, Investment Research Dynamics:
When a thoroughly corrupt Government wants to try and hide something from the public, they exert an all-out effort to mis-direct and cover-up. The financial markets are no different. It’s been obvious to anyone with one good eye and one brain cell that the puppet-masters behind the Wall Street/DC “curtain” have been propping up the Dow/S&P 500 and exerting forcefull downward pressure on the price of gold and silver. Why gold and silver? Because gold and silver, for 5,000 years, have been the world’s “alarm system” alerting everyone when something is terribly wrong.
I remember vividly 2008. Many of you were not involved in the precious metals markets. Inexplicably, the manipulators smashed gold and silver down from their bull market highs in March 2008 very quickly. Silver was smashed down to $8 after hitting $21 in March. I remember staring at the futures screen wondering what would stop JPM from taking silver down to zero?
Read More @ Investmentresearchdynamics.com

U.S. Mint Suspends Silver Eagle Sales AGAIN

from TruthNeverTold:

Obama Declares That ISIS Will “Not Be Defeated with Guns” But With “Better Ideas”

Shoulda thought of that before flooding the Middle East with guns
by Steve Watson, Infowars:
President Obama yesterday declared that the ISIS ideology cannot be defeated with guns, and that it will take “a more attractive and compelling vision” to defeat the terror group. “Ideologies are not defeated with guns, they are defeated by better ideas” Obama clarified in a statement. The President was meeting with military leaders at the Pentagon when he made the comments.

Perhaps Obama should have considered this notion before continuing the policy of flooding the chaotic Middle East with weapons.

As InfoWars has tirelessly documented, US weapons have fallen into ISIS hands time and time again and bolstered the terror group via the insane policy of arming and training so called ‘moderate rebels’ in Libya, Syria and Iraq. The CIA has shipped weapons to al-Qaeda affiliated groups in Syria since at least 2012, a fact reported by The New York Times.

Read More @ Infowars.com

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