The factors that led to the stock market crash of 24 August 2015

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Meconomy153
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The factors that led to the stock market crash of 24 August 2015

Post by Meconomy153 » Mon Aug 24, 2015 4:03 pm

These are the factors that led to the crash of the stock markets today:

1. Concerns that China's economy is slowing faster than analysts had anticipated: China and Asian stocks slumped to three-year lows on Monday as concerns deepened about China's stalling economy which has rattled equity investors around the world. In addition, weak Chinese manufacturing data came in on Friday. Recently, People's Bank of China devalued its tightly controlled currency, causing market's biggest one-day loss in two decades. But as the world's second-largest economy continues to sputter, there are fears that China could be forced to devalue the yuan even more.

2. Uncertainty over when the U.S. Federal Reserve will raise interest rates for the first time in nearly a decade. No one knows when this will happends. Even the banksters doesn't know. Higer rates = higer costst for the US government.

3. Oil futures hit their fresh 6-1/2-year lows as investors continue to worry about weak demand as China's economy slows, amid a global supply surplus.

4. Most currencies have been falling since China’s surprise decision to devalue the yuan two weeks ago. This has triggered fears of similar moves by other countries that may prefer to lower their currency’s value.

5. On Friday, US markets recorded their steepest one-day drop since 2011. Weak Chinese manufacturing data, and another drop in China's stock market, rattled investors and led to Friday's tumble.

Bjorn
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Re: The factors that led to the stock market crash of 24 August 2015

Post by Bjorn » Mon Aug 24, 2015 4:32 pm

Today's stock prices are extreme high! I hope we see a good crash to fix this idiot rates.

We had now seven years of crazy central banksters dumping free money into the stock markets. The Fed is printing so much dollars, that people use the dollars even as toilet paper.

Look around you:

Corporate profits are extremely high, your wage is extremely low. We have all debts and almost all people are poor. The banks that are growing fastest are food banks.

We should end this system. My solution is to stop buying stocks. Stop holding dollars and start buying maxcoins.

KCS
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Joined: Sun Aug 23, 2015 12:07 pm

Re: The factors that led to the stock market crash of 24 August 2015

Post by KCS » Mon Aug 24, 2015 6:51 pm

Come on people!!

Anyone with even half a clue knew the China economy was a bubble waiting to burst.

You can only artificially pump up an economy for so long. If they use this as an opportunity, it would be a good thing. Unfortunately their leaders are only interested in staying in power (sounds familiar to Americans).

China's stock market in no way reflects that status of its economy. The proof in that was the rapid formation of the bubble in their stock market despite indications that their economy was slowing. Despite almost no foreign investment in Chinese stocks, international markets dropped as a fear response to Chinese markets dropping.

Now, we have serious indications that China's economy is starting to tank other than it's market dropping. With both events (China's markets and economy both dropping) it will be interesting to see just how irrational the fear is in the global markets. We could see a very significant drop in global markets. Since I feel that this will be an irrational drop, many sound companies should be over sold and create excellent buying opportunities for the brave.

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