Chinese Stock Market Crash = Little Effect On Metals

The Chinese Stock market fell due to massive suspensions of trading until Europe decides what is happening with Greece not due to actual falls in profit or anything else with these companies. It is more so just investors speculating on what is happening in Europe as has been happening in other countries such as Australia who fell $30 billion in the first day after the referendum. Overall I must congratulate the Chinese on the proactive measures to prevent massive speculative trades and withdrawal of capital which would wreck havok with their developing finance sector. In short a short term pain for long term safety/gain.

China will pay DEARLY for not letting the market run its course. Nothing they are doing now will stop the market from correcting and going lower.

China will find in the future that their capital outflows will increase and their foreign direct invest will drop in the future as a result of trying to let their stock exchanges run their normal course.

The Chinese government is running scared and has absolutely no clue or idea how to handle whats happening in their markets, they are in complete panic and what they are doing now is going to come to hurt and haunt them big time.

I would say that this event and the major upcoming pain upon China is going to set China back quite a bit and their fake communistic paradise is going to come crashing down as they face the wrath of the Chinese people for trying to artificially control markets and not let them run their course.

The Chinese government is showing the entire world right how just how inept and scared their are, how embarrassing for them.

yup7676 what upcoming pain is coming up for China? I have studdied economics for 3 years and am about to start my Second year of University Economics and absolutely nothing would support that statement of yours. I am getting a feeling here that your strong liberalist principles are distorting your judgement in this arguement as there is no actual economic backing for your statement.

If China is inept for controlling markets to better the economy please tell me how a free market economy is working for the United States with specific detail on the GFC?

For bonus points explain how the US Free Market went about preventing rampant speculation particularly in the case of Enron?

Well if the US is not a free market then what country would be?

I would love to see how the government pushed banks to provide loans to unqualified borrowers and then on sell those loans to other companies. Also if the government didn't intervene in the market what in the world would the US banking sector look like when a run on the bank makes them insolvent?

I think you have misunderstood the concept of a free market, Just because a government may intervene in a market doesn't instantly make it a planned market. A free market is one where the government doesn't intervene as actively as a planned economy e.g. pricing, qty produced etc.

Wow that must mean they are a planned economy then with your reasoning. The second part is actually rather stupid, they call it micro credit which is very successful. In short there is a MAJOR difference between loaning to people below the median wage and loaning money to people that can't be repaid. Overall that post barely even merits a response.

I suggest you attend any University or Financial institution outside the USA to successfully understand any sort of economic principle. By the way I have read many books on economic principles not only Keynsian but also Classical, Neo Classical, Monetary and Fiscal economics along with a few fringe economics concerning extreme liberalist economics (serves as a pretty funny side of comedy from real economics.)

Seriously you thereby have no idea of the concept of micro credit then. Micro credit is loaning smaller amounts of money to people under the median income level (in your case if anyone under the median income level was denied a mortgage 49% of your population would not have housing.)

Please learn economics first before you try to respond to my post as even a person who has studied economics for one or two weeks would point out the blatant failings of your argument.

Anyway okay take out government intervention in an economy and see how it goes. Considering the USA is crippled by it's democratic incompetence which is fuelled primarily by institutions and groups (extreme liberalist groups) who care far more about profits than the actual wellbeing of not only that economy but also the people (Guns associations which are also a joke in most law courses in the world out side the US.)

Again, I repeat myself-

The Chinese stock market is simply correcting itself, it has had a spectacular run. IF you bought early in the uptrend, you still are sitting on huge profits. Furthermore, China's market did not crash NOR has what has happened there impacted any of the worlds global finances.

Finally, these faulty attempts to slow down the selling in the market are going to back fire on China and going forward, China's attempts to allow the free markets to work themselves is going to prolong the pain AND china is sending the entire globe the message that if one invests money in china, we might end up changing the rules and that is not and will not set will with the entire world which China needs DEARLY.

No one can control an economy and you really should throw out your textbooks out. If you havent learned this yet you will soon enough.

Long live free markets the markets such as the ones found in the USA