http://www.reuters.com/article/2015/08/22/china-imf-idINKCN0QR0MM20150822

China's economic slowdown and a sharp fall in its stock market herald not a crisis but a "necessary" adjustment for the world's second biggest economy, a senior International Monetary Fund official said on Saturday.

Fresh evidence of easing growth in China hammered global stock markets on Friday, driving Wall Street to its steepest one-day drop in nearly four years.

"Monetary policies have been very expansive in recent years and an adjustment is necessary," said Carlo Cottarelli, an IMF executive director representing countries such as Italy and Greece on its board.

"It's totally premature to speak of a crisis in China," he told a press conference.,,,

WELL, HOW ABOUT THE REST OF THE WORLD? AND THIS NEW WEEK WE'RE HAVING, WHAT ABOUT THAT?

http://www.dw.com/en/german-consumers-see-higher-economic-risks/a-18663385

German consumers have lost some of their optimism that prevailed earlier in the year, a leading market research group has shown. Its latest sentiment barometers points downwards amid a volatile global environment.
Symbolbild Konsumklimaindex

GfK market researchers said Friday their forward-looking monthly barometer gauging the mood among German consumers eased by 0.2 points for September to 9.9 points, thus hitting its lowest level in about half a year.

The group's chief, Rolf Bürkl, hastened to add, though, that the drop was not steep enough to get nervous.

"Despite the fall, I wouldn't say that domestic consumption is stuttering," Bürkl said in a statement. "The index is still at a rather high level overall."

But the consumers polled by GfK voiced some concern about slowing growth in China and other major emerging economies and the impact that development might have on Germany's export-oriented economy.

Many respondents said they would refrain from making big-ticket purchases right now, fearing their incomes might not rise as high as expected earlier in the year.

But all in all, domestic consumption would continue to be a major driver for growth in Europe's powerhouse, Bürkl insisted.

"After all, the German labor market is very robust and employment high, leaving room for decent wage increases in the months ahead."

http://www.reuters.com/article/2015/08/21/us-usa-economy-pmi-idUSKCN0QQ1I320150821

Growth in the U.S. manufacturing sector slowed to its weakest pace in almost two years in August, according to an industry report released on Friday.

Financial data firm Markit said its preliminary U.S. Manufacturing Purchasing Managers' Index fell to 52.9 in August, its lowest since October 2013, from a final July reading of 53.8. Economists polled by Reuters had forecast the August figure would be 54.0.

A reading above 50 indicates expansion in the sector.

Job creation also slowed in August, with the index at 52.2, its weakest since July 2014, down from a final July reading of 53.8.

"August’s survey highlights a lack of growth momentum and continued weak price pressures across the U.S. manufacturing sector, which adds some fuel to the dovish argument as policymakers weigh up tightening policy in September," said Tim Moore, senior economist at Markit.

"According to survey respondents, the strong dollar continued to put pressure on export sales and competitiveness, while heightened global economic uncertainty appeared to have dampened client spending both at home and abroad."

The index's output component fell to 53.7, its lowest since January 2014, from the July final reading of 55.3.

The manufacturing sector Purchasing Managers' Index is compiled by information services company Markit.

http://www.reuters.com/article/2015/08/21/markets-money-idUSL1N10W0EP20150821

A key borrowing cost for banks to lend dollars to each other rose for a ninth consecutive week as traders speculated over whether the U.S. Federal Reserve may raise interest rates perhaps as early as September.

The London interbank offered rate for three-month dollar loans held at 0.31290 percent for a second day on Friday.

For the week, this benchmark rate for $350 trillion worth of financial products worldwide was up 0.465 basis point.

It reached 0.33335 percent on Wednesday, which was its highest level since October 2012.

the banks stopped trusting the solvency of their fellow bankers and the markets seized up.

Ironic to see a nation's economy die because its currency is too strong...

and welcome to the group!

http://www.marketwatch.com/story/tense-day-for-wall-street-ahead-as-china-stocks-tank-85-2015-08-24?siteid=YAHOOB

Wall Street suffered one of its most volatile sessions in years Monday, with the Dow industrials plunging more than 1,000 points in the opening minutes, bouncing back to recover most of the losses and then fading into the final bell to record the biggest drop in four years.

Meanwhile the main benchmark S&P 500 slipped into correction territory, having fallen more than 10% from its peak reached on May 21.

“Short-term fear of the unknown is still in the driver’s seat, I would expect more volatility in the coming weeks,” said Kate Warne, investment strategist at Edward Jones.

Indeed, Monday’s trading session saw the main indexes plunge by more than 5%. Nearly 14 billion shares changed hands on Monday, the largest volume since August 10, 2011.

DETAILS FOLLOW

Shouldn't they wait until there's some indication that the crisis is over? What if Tuesday is worse?

A true crash hasn't occurred, yet.

http://www.washingtonpost.com/business/economy/chinas-black-monday-triggers-chaotic-day-in-stock-markets/2015/08/24/fcf0bbc0-4a8c-11e5-8e7d-9c033e6745d8_story.html?wpisrc=al_alert-COMBO-economy%252Bnation


A sharp stock market sell-off that began in Beijing clobbered Wall Street on Monday, sending shares plunging by record amounts amid renewed fears that the global economy is slowing down and world leaders are running out of ways to pump it back up.

“Black Monday,” Chinese state media tweeted as markets there tumbled nearly 8.5 percent. The turmoil drove other Asian indexes down to three-year lows and knocked European markets off by as much as 5 percent. On Wall Street, the Dow Jones industrial average plummeted more than 1,000 points — a historic nose dive — just minutes after the opening bell rang. Stocks then staged a dramatic turnaround but stumbled again in the afternoon to close nearly 600 points in the red. The sell-off and ensuing chaos bruised every industry. Some of the biggest U.S. companies have shed tens of billions of dollars in market value in only a few days.

The market slide continued Tuesday across Asia. China’s major stock indexes sank more than 6 percent in early trading, Reuters reported. The benchmark Shanghai Composite index lost 6.4 percent, while the Shanghai Shenzhen CSI 300 index was down 6.3 percent.

The jaw-dropping swings reflected the level of investor anxiety over the status of the world’s recovery from the 2008 financial crisis. China’s breakneck expansion has cooled off, but unlike on previous occasions, government officials have done little to intervene so far. Adding to the uncertainty is the prospect of interest rate increases in the United States and the United Kingdom that some analysts worry could derail progress in two of the global economy’s bright spots.

“This is all about fears of a hard landing in China,” said Campbell R. Harvey, an economist and business professor at Duke University. Wall Street’s panicked opening, he added, “is bare-faced evidence of a market overreaction.”

Posted on August 24, 2015 by Yves Smith

Bill Maher has a devastating short segment on the “post greed is good” world, as exemplified by the “sharing economy”. Trust me, just watch it, and then circulate it widely:

In a bit of synchronicity, the New York Times today had another important zeitgeist piece (hat tip Scott), Dinner and Deception, by Edward Frame, a grad student and recent captain at a Michelin three-star restaurant in New York City. It describes the artifice, stress, and tight control of workers required to achieve the illusion of effortless, flawless service. This is also an important piece to read in full, and hopefully this extract will encourage you to do so pronto:

Next to a doorway leading into the dining room, a sign in the kitchen summed up the job in the form of a commandment: “Make it nice.” Make it nice means you hold yourself accountable to every detail. It means everything in the restaurant must appear perfect — the position of the candle votives, the part in your hair. Everything matters.

Most of us internalized this mantra quickly. One of my first assignments as a food-runner was to polish glassware. I worked in a small alcove, connected to the dishwasher. Glass racks came out, I wiped away any watermarks or smudges, and then, just as I finished one rack, another appeared. This went on for hours, like some kind of Sisyphean fable revised for the hospitality industry. By hour two my fingers hurt and my back ached. But I couldn’t stop. The racks kept coming. Slowing down never occurred to me. There wasn’t time. I needed to make it nice. I wanted to make it nice…

When someone spoke about the “swan” in lineup, a metaphor for the ideal server, churning tirelessly beneath the surface while maintaining the impression of absolute poise to the casual observer, there was never a hint from management that, like us, they understood the psychological dividedness their favorite symbol suggested. But as captains or servers or sommeliers, our job wasn’t just serving food, it was playing a part, and we did it with a degree of self-conscious irony that our bosses seemed incapable of.

Complete story at - http://www.nakedcapitalism.com/2015/08/bill-maher-new-york-times-op-ed-on-the-post-greed-is-good-economy.html

and Nikkei is down 3.96%. The others are all in positive territory.

The US markets shouldn't be quite as battered tomorrow.

Dow 16,180 +309 1.94%
Nasdaq 4,650 +124 2.73%
S&P 500 1,933 +40 2.10%
GlobalDow 2,311 +35 1.54%
[font color="red"]Oil 39.13 +0.89 2.33%[/font]

I'm getting dizzy.

I'll turn on Cramer. He'll know whats going on.

So much for the sucker rally.

buy the crash/dip, ride the momo back up. Trigger profit algos. Lull them into contentedness the next day with a minor surge. Lower the boom and trigger the profit algos part deux.

Listening to the so-called analysts on TV & radio recently, they are saying to buy and hold for the long-term, stay the course.

in the long term, IBGYBG. In the really long term, IBDYBD.