That just smacks of desperation. The article also mentions twice that the government is concerned about "monstrous public disorder" which further fails to instill confidence.
It's not good, but everyone (everyone who was paying attention, anyway) knew that China was in an economic bubble. Still, they have a fundamentally strong and growing economy, both internally and in terms of exports, so they'll weather this. Unlike Greece, they've learned that socialism doesn't work and abandoned it.
Posted by: Pixy Misa at Tue Jul 7 21:50:32 2015 (PiXy!)
All good points. China's been around for 4,000 years so I'm sure they will endure. My big concern is secondary and tertiary effects that this might set in motion. "Monstrous disorder" does not lend itself to optimal decision making.
Posted by: The Brickmuppet at Tue Jul 7 22:09:13 2015 (ohzj1)
Yeah, the free market just optimises things (more or less) in the long run. It makes no guarantees that the path will be smooth. Even less so when governments inevitably put their thumbs on the scales and their fingers in the till.
Posted by: Pixy Misa at Tue Jul 7 22:55:18 2015 (PiXy!)
And just for perspective - after a drop of 30%, China's stock market is at its lowest point since... April. April 2015. That's how much of a bubble they've been in.
Posted by: Pixy Misa at Wed Jul 8 01:24:17 2015 (PiXy!)
As of this morning, it's now 40% of the stocks for which trading has been suspended...
Posted by: Steven Den Beste at Wed Jul 8 10:52:30 2015 (+rSRq)
Potential for some real ugliness. *Everything* is trending down. Stocks, commodities, the value of the dollar, precious metals. There's a lot of "pay no attention" hand-waving going on, too.
Posted by: Ben at Wed Jul 8 12:10:54 2015 (DRaH+)
A sure sign that everything is going to hell is when the government orders some people to stop selling, which just happened.
Posted by: Steven Den Beste at Wed Jul 8 19:01:21 2015 (+rSRq)
We'll see over the next several days, but copper and aluminum did not do well, which indicates a lack of faith in manufacturing.
Of course, there was a whole lot of stuff making people jittery, the computer glitches (which we are assured were not hacks) Greece and concerns about the safety of the donut supply
may have combined to accentuate alarm.
Still, I fear the Chinese problem may well be a nontrivial matter.
Posted by: The Brickmuppet at Wed Jul 8 19:37:40 2015 (ohzj1)
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