Chinese Investors Going NUTS, Marc Faber Sees 40% Stock Drop & More

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Turmoil in China’s Stock Markets Takes a 

Psychic Toll

(From The New York Times)

In some cities, students have dropped out of university, unable to give up their habit of tracking their investments, according to local news media. Wealthy investors have sought counseling, struggling to come to terms with the enormity of their losses after stock prices plunged. In response, doctors are advising traders to take up new hobbies and spend more time with family and friends. Some medical experts say high-risk groups, such as the elderly, the physically infirm and emotionally unstable, should consider withdrawing from the markets altogether.

Marc Faber : The U.S. Stock Market could "easily" drop up to 40 percent

Why US stocks could drop up to 40%

The U.S. stock market could "easily" drop 20 percent to 40 percent, closely followed contrarian Marc Faber said Wednesday—citing a host of factors including the growing list of companies trading below their 200-day moving average. In recent days, "there were [also] more declining than advancing stocks, and the list of 12-month new lows was very high on Friday," the publisher of The Gloom, Boom & Doom Report told CNBC's "Squawk Box." 

The World is Defenseless Against the Next Financial Crisis

The world will be unable to fight the next global financial crash as central banks have used up their ammunition trying to tackle the last crises, the Bank of International Settlements has warned. The so-called central bank of central banks launched a scathing critique of global monetary policy in its annual report, claiming that central banks have backed themselves into a corner after repeatedly cutting interest rates to shore up their economies. These low rates have fuelled economic booms, encouraging excessive risk taking. Booms have then turned to busts, which policymakers have responded to with even lower rates.  

China Destroyed Its Stock Market in Order to Save It

The enormously invasive measures Beijing used to stem trading losses may have damaged the Shanghai and Shenzhen exchanges for years to come.

China's real estate, credit and investment bubble risks global recession

China is the number one threat to the global economy, analysts say, with an over-inflated "triple bubble" threatening to drag global gross domestic product below 2 per cent. 

Are Big Banks Using Derivatives To Suppress Bullion Prices?

The bullion banks sell uncovered shorts on the gold futures market to drive down an otherwise rising price of gold. By dumping so many uncovered short contracts an artificial increase in “paper gold” is created, and this increase in supply drives down the price. 

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2.    Bank of Canada seen pushing on a string with rate cuts
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4. Shadow Lenders Are Pushing IntoRisky Real Estate Deals

Top Weekly Ideas and Insights

An Inconvenient Truth:

What Happens When The Fossil Energy Age Ends?

 EXISTENTIAL REALITY 

End Of Fossil Energy or Archaic Fabrications?

NEW Shanghai Tower Means End Nearing

Why this 2,073-foot Chinese building could be an omen of economic doom

Nothing suggests the height of human achievement and economic prowess quite like a skyscraper.

The newly completed 2,073-foot-tall Shanghai Tower is officially the second-tallest building in the world (behind Dubai's Burj Khalifa) and the tallest in China.

And taller skyscrapers are planned, such as China's Sky City and Saudi Arabia's Kingdom Tower.

But as "cool" as all of these buildings are, glitzy construction booms have historically coincided with the beginnings of economic downturns, according to Barclays' "Skyscraper Index." (For all you economics wonks out there, basically, skyscrapers can be considered a sentiment indicator.) Read More.

OMG - Tokyo 1987?

OCED Warns Australia Housing To Crash

The OECD has warned Australia’s housing market could collapse

  A LEADING authority on the world economy has warned that Australia’s inflated housing market is at risk of a “sharp correction”.

While the Organisation for Economic Cooperation and Development, was forecasting a three per cent growth in our economy next year, thanks to a rise in investment in the non-mining sector and exports, it feared the strength of the country’s property market could result in a “sharp correction” in house prices.

In a report released in Paris on Wednesday, the OECD said if commodity prices continued to fall, it would affect overall revenue and the cutbacks in production could become “substantial”. Read More.

Pop goes the bubble ... An erial view of Altona on Wunulla Road in Point Piper, Sydney. Picture: Supplied Source:Supplied

Unbelievable PLUNGE In US New Home Sales

US New-Home Sales Collapse in March

Sales of new U.S. homes plummeted in March, as the spring buying season opened with sharp declines in the Northeast and South.

The Commerce Department said Thursday that new-home sales fell 11.4 percent last month to a seasonally adjusted annual rate of 481,000. This marks a swift reversal from an annual sales pace of 543,000 in February, which had been the strongest performance in seven years.

Purchases of new homes have been volatile on a monthly basis, although sales during the first quarter of 2015 are higher than in 2014. The volatility points to a real estate market still finding its footing in the aftermath of the housing bubble that triggered the Great Recession in 2007 and the weak recovery that has followed. Read More.

Not That Long Ago