The markets are beginning what could in fact be an epic meltdown.
China is on the verge of a “Lehman” moment as its shadow banking system implodes. China had pumped roughly $1.6 trillion in new credit (that’s 21% of GDP) into its economy in the last two quarters… and China GDP growth is in fact slowing.
This is what a credit bubble bursting looks like: the pumping becomes more and more frantic with less and less returns. Check out the collapse in China’s stock market.
We are literally back into 2008 Crash territory here:
Brazil, another “coming economic superpower” is experiencing rampant riots (over two million people in fact) as inflation soars. Here again we are back into 2008 Crash territory:
And the US… well the breakout to new highs is looking more and more like a false breakout. These developments usually result in extreme violent swings in the other direction. In this case… DOWN.
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Best Regards
Graham Summers