Meanwhile in China.....

[DimPrawn]

Fear China's stock-market earthquake - BBC News

For all my obsession with the probable exit of Greece from the euro and the most important social-security-cutting and tax-reforming UK budget for many years, there is an earthquake happening in China that may end up touching our lives as much.

It is the plunge over the past month of Chinese shares - whose value has dropped by around a third since the high of 12 June.

So to make an apple-and-pears comparison: the loss in the value of Chinese companies at more than $3 trillion is about 20 times what most economists expect the write-offs of Greek government debt will ultimately turn out to be.

Will the Chinese be selling their London property portfolios to cover their losses?

[AtW]

Will the Chinese be selling their London property portfolios to cover their losses?

No, they will be moving into London and claiming asylum...

[Zero Liability]

Problems have been brewing in China for a long while now, hence why the PBOC is trying to keep the credit flowing. An earlier article on it.

[tomtomagain]

The Chinese market is down 30% in a month. Those pseudo-communists fell for the oldest trick in the capitalist book. A bursting bubble.

[Zero Liability]

Pseudo-capitalists, too, because this is all about using central banks to subsidise government debt (in this case, foreign debt as well as domestic), "stimulate" economic activity through cheap debt and socialise risk/losses, to the extent they can get away with it.

[BrilloPad]

Fear China's stock-market earthquake - BBC News


Will the Chinese be selling their London property portfolios to cover their losses?

Load of nonsense in that article. Yesterday I valued my shares in BrilloOffshore99 at £3 trillion. Today I realized that was nonsense and valued it at nothing. No harm done.

But if I lend you £1k and you don't pay me back, I really have lost £1k.

[AtW]

Dirty spekulants...

[sal]

Load of nonsense in that article. Yesterday I valued my shares in BrilloOffshore99 at £3 trillion. Today I realized that was nonsense and valued it at nothing. No harm done.

But if I lend you £1k and you don't pay me back, I really have lost £1k.

You don't put a value on your shares, the market does and people willing to pay for them. The real impact is that a lot of people including millions of working class Chinese fell for the ponzi scheme and invested trillions by buying shares encouraged by the government that this is the sensible thing to do. Many of them have now lost their life savings.

[SimonMac]

Too many taking a short term approach, people wanting to make a quick buck heard how other people have been making money as the market is up 150% over the year, they bought at the top and have lost out now the market has adjusted itself.

Only people who will make money in the market are the people who plan long term, 5 years+ as a minimum

[DimPrawn]

Too many taking a short term approach, people wanting to make a quick buck heard how other people have been making money as the market is up 150% over the year, they bought at the top and have lost out now the market has adjusted itself.

Sounds like UK property bubble 2.0