by Adam Hamilton, Zeal, LLC:
China’s stock bubble has burst, with its stock markets utterly collapsing after rocketing parabolic. The failure of this popular speculative mania has grave implications for the global stock markets. It shatters the universally-believed myth that central banks can nullify normal market cycles. No government has more power over its stock markets than China’s, yet not even it could magically eradicate greed and fear.
Even before their recent calamity, the Chinese stock markets had been the most-interesting financial story of 2015. Having the world’s second-largest economy, China is immensely important in global markets. And its stock markets were soaring, as evidenced by China’s flagship benchmark stock index. It is the Shanghai Stock Exchange Composite Index (SSEC), the local equivalent of the US S&P 500.
Please follow SGT Report on Twitter & help share the message.