China Bans Stock Selling to Stem Meltdown, NYSE Closes on “Glitch”

China has issued a ban on the selling of stocks and bonds for large shareholders for the time being as part of an effort to prevent a complete “1929-style event.” The Shanghai Composite Index has seen a decline of more than 30% in the past month alone. China has seen incredible growth over the past year surging more than 100% in the first five months of 2015. Analysts have been cautioning the danger of over-inflated asset classes in China for months and many feel that this is only part of a “correction”. Some are worried that it will get much bigger and could turn into a complete meltdown similar to what the U.S. experienced in 1929– the only thing keeping the market afloat is the current ban on selling. People want to get out of the markets but they can’t.
If you think that can’t happen here at home, well, today it did. When the New York Stock Exchange opened this morning, stocks started tumbling. They fell by more than 200 points before trading was suspended due to a “technical glitch.” No one was able to buy or sell anything. If you had wanted to pull your money out of the market this afternoon, you would have been out of luck– at least for a few hours. By the time the market reopened the panic had subsided a bit and selling was muted for the last hour of trading, but it still closed down by more than 260 points.
Greece also announced today that they were extending the “bank holiday” yet again, deciding to keep the banks and Greek stock market closed until next Monday at the earliest.
All three of these events should be a wake-up call for anyone with their money left in the stock market or the bank– it is simply not safe. Call us today at 1-800-777-6177 to see if you qualify.

This entry was posted in Gold, Precious Metals News and tagged , , , , , , . Bookmark the permalink.

Comments are closed.