ICTChris Posted August 24, 2015 Share Posted August 24, 2015 The Chinese stockmarket is down 8% this morning, it's down about 30% over the last few months. While economic growth remains strong (depsite some observers doubts about official forecasts) even the threat of a slowdown has huge implications for WEstern economies. China is a massive consumer of commodities and any slowdown will have knock on effects to just about every country in the world. How do P&Bers see a Chinese economic slowdown affecting Scotland, the UK and the rest of the world? Link to comment Share on other sites More sharing options...
strichener Posted August 24, 2015 Share Posted August 24, 2015 The Chinese stockmarket is down 8% this morning, it's down about 30% over the last few months. While economic growth remains strong (depsite some observers doubts about official forecasts) even the threat of a slowdown has huge implications for WEstern economies. China is a massive consumer of commodities and any slowdown will have knock on effects to just about every country in the world. How do P&Bers see a Chinese economic slowdown affecting Scotland, the UK and the rest of the world? Do we know the RBS exposure? Link to comment Share on other sites More sharing options...
Fotbawmad Posted August 24, 2015 Share Posted August 24, 2015 In China the average house price is 18 times more than the average annual salary, which is why there is all these ghost cities. Many Chinese have invested in them via these wealth management funds, which even a senior banker has admitted is fundamentally a ponzi scheme. If they're all these unoccupied houses and you know people can't afford them, then you don't have to guess what is going to happen down the line. The situation in China is inevitably going to lead to a U.S style great depression, and it will have a domino effect around the world. Link to comment Share on other sites More sharing options...
ICTJohnboy Posted August 24, 2015 Share Posted August 24, 2015 In China the average house price is 18 times more than the average annual salary, which is why there is all these ghost cities. Many Chinese have invested in them via these wealth management funds, which even a senior banker has admitted is fundamentally a ponzi scheme. If they're all these unoccupied houses and you know people can't afford them, then you don't have to guess what is going to happen down the line. The situation in China is inevitably going to lead to a U.S style great depression, and it will have a domino effect around the world. Thanks for cheering us all up! I think a more likely outcome will be for the US to sneeze, and the UK to catch a cold. Link to comment Share on other sites More sharing options...
welshbairn Posted August 24, 2015 Share Posted August 24, 2015 The way it's going it's hardly going to be worth nicking lead off church roofs anymore. Link to comment Share on other sites More sharing options...
Fide Posted August 24, 2015 Share Posted August 24, 2015 The Chinese economy, as played out by Pandas. Link to comment Share on other sites More sharing options...
mjw Posted August 24, 2015 Share Posted August 24, 2015 We are seeing a lot of production that was moved down to China finding its way back to us . It seems manufacturing for a European market isn't as cost effective as some companies thought. Link to comment Share on other sites More sharing options...
Mr Bairn Posted August 24, 2015 Share Posted August 24, 2015 Should close their restaurants at 9 PM IMO Link to comment Share on other sites More sharing options...
Bishop Briggs Posted August 24, 2015 Share Posted August 24, 2015 The big problem for Western economies is that China has been a major holder of government debt, especially in the US. China's current woes will mean that it cannot afford to buy more western debt. Another credit crunch, even bigger than 2008, is inevitable and America's economy could collapse very quickly. Western governments may need to raise interest rates to attract other investors, especially private institutions. Higher interest rates would make debt returns more competitive with equities. The result will be that the stock market will drop considerably, 30 to 40% or more as has happened in China. Governments that run large budget deficits could find it difficult to attract buyers for their Treasury bonds. They will have to slash spending like the Greeks to avoid going bust. If you think that austerity is bad now, it's nothing compared to what's coming. Link to comment Share on other sites More sharing options...
doulikefish Posted August 24, 2015 Share Posted August 24, 2015 I blame salmond Link to comment Share on other sites More sharing options...
Fide Posted August 24, 2015 Share Posted August 24, 2015 I blame salmond Me too. Tbf, it's probably because he's fat and has an old wife. Link to comment Share on other sites More sharing options...
Thumper Posted August 24, 2015 Share Posted August 24, 2015 If you're hearing anything at all about this in the mainstream media that means it's going to have a disastrous effect on the incredibly rich. So, silver linings. Link to comment Share on other sites More sharing options...
Mr Rational Posted August 24, 2015 Share Posted August 24, 2015 Dow Jones is currently in panic mode according to the Guardian. Link to comment Share on other sites More sharing options...
Fide Posted August 24, 2015 Share Posted August 24, 2015 Dow Jones is currently in panic mode according to the Guardian. Boo hoo. I presume the NASDAQ will be snotters and tears everywhere. Link to comment Share on other sites More sharing options...
Kryptonite Posted August 24, 2015 Share Posted August 24, 2015 Jelly & Ice-cream when China dies? Link to comment Share on other sites More sharing options...
ICTChris Posted August 24, 2015 Author Share Posted August 24, 2015 Nasdaq is down nearly 9%. Paris down 7%, Frankfurt 6%. FTSE rallying a bit, still down nearly 5%. Link to comment Share on other sites More sharing options...
Fide Posted August 24, 2015 Share Posted August 24, 2015 Former SPAD to Gordon Brown, Damien McBride here. Christ. Damian McBride @DPMcBride 2h Crash advice No.3: agree a rally point with your loved ones in case transport and communication gets cut off; somewhere you can all head to. View details· Damian McBride @DPMcBride 2h Crash advice No.2: do you have enough bottled water, tinned goods & other essentials at home to live a month indoors? If not, get shopping. View details· Damian McBride @DPMcBride 2h Advice on the looming crash, No.1: get hard cash in a safe place now; don't assume banks & cashpoints will be open, or bank cards will work. View details· Link to comment Share on other sites More sharing options...
Mr Rational Posted August 24, 2015 Share Posted August 24, 2015 Run to the hills, run for your life!!! Link to comment Share on other sites More sharing options...
Elixir Posted August 24, 2015 Share Posted August 24, 2015 Link to comment Share on other sites More sharing options...
CGR Posted August 24, 2015 Share Posted August 24, 2015 Much ado about nothing, really. Shanghai stock exchange in perspective, 10-year chart: Link to comment Share on other sites More sharing options...
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