Signs Of Financial Turmoil In Europe, China And The United States
As we move toward the second half of 2015, signs of financial turmoil
are appearing all over the globe. In Greece, a full-blown bank run is
happening right now. Approximately 2 billion euros were pulled out of
Greek banks in just the past three days, Barclays says that capital
controls are “imminent” unless a debt deal is struck, and there are reports that preparations are being made for a “bank holiday” in Greece.
Meanwhile, Chinese stocks are absolutely crashing. The Shanghai
Composite Index was down more than 13 percent this week alone. That
was the largest one week decline since the collapse of Lehman
Brothers. In the U.S., stocks aren’t crashing yet, but we just
witnessed one of the largest one week outflows of capital from the bond
markets that we have ever witnessed. Slowly but surely, we are
starting to see the smart money head for the exits. As one Swedish
fund manager put it recently, everyone wants "to avoid being caught on the wrong side of markets once the herd realizes stocks are over-valued."
