August 24, 2015

Black Monday: TSX plummets amid global economic turmoil

Rebel Staff

The Toronto Stock Exchange (TSX) plummeted by more than 700 points within minutes of opening Monday, with New York’s Dow Jones losing 1,000 points amid escalating fears about a Chinese economic slowdown.  

In a matter of minutes, Standard & Poor’s/TSX Composite Index was down 696.22 points, or approximately 5.17 per cent, following on from a loss of 262 points on Friday.

Plunging to their lowest level since 2013, Canadian stocks are headed for a fourth straight monthly decline, Bloomberg Business reports.

The startling global sell-off that started in China - the “benchmark” Shanghai composite index reportedly erased all of the gains it had made this year on a day dubbed “Black Monday” by Xinhua, China’s official state news agency - has seen nearly $10 trillion wiped from stock markets across the world having peaked on June 3, according to the New York Times.

Bloomberg Business has reported that commodities have been hit hard, with Canadian energy producers, already the worst-performing sector on the TSX this year, declining by 3.6 per cent as Brent crude shrunk to less than $45 a barrel for the first time since 2009.

In a note to Fox Business, IG Market Analyst Alastair McCaig said: “Oil prices have continued falling and even though they’ve been sitting in oversold territory for more than a week, the increasing doubts over China’s abilities to meet its 7 per cent growth target is looking more and more unachievable.”

The loonie also fell to a new decade low. Sitting at its lowest level since August 2004, one Canadian dollar now buys 76 U.S. cents or 48 pence in British pounds sterling.

Pressed on his party’s fiscal record at an event in Drummondville, Quebec, Prime Minister Stephen Harper underlined his message that the economy is the most important issue facing Canadians.

“Given the challenges around us, we need to stick with a long-term plan that has been working and will work,” Harper said Monday.

Targeting his rivals, the Conservative leader continued: “What the other guys are proposing [Liberal leader Justin Trudeau and NDP leader Tom Mulcair], at a time of enormous market instability, is that they would embark on large-scale, permanent spending increases.”

“They would finance that through deficits and through big tax increases, including tax increases on workers and on job-creating businesses.”

As reported by the CBC, Trudeau told reporters: ”We know that it's time that Canadians had confidence in the economy as they look to the future, and not face a government that has no plan and wants you to think that sticking with what we have is well enough, when the real risk is not making change to the failing status quo.”

Mulcair chose instead to target Harper’s faith in Canada’s energy industry, accusing the Prime Minister of leaving the economy vulnerable to such financial crashes.

“Don’t forget that the reason we're in such a precarious situation in Canada right now is because Stephen Harper made a huge bet on one number - oil and gas. And when that number didn't come in, guess what? We were left with a more precarious situation for all Canadians," Mulcair said during a campaign stop in Toronto, according to the CBC.

Eight weeks from polling day,’s founder and pollster Éric Grenier latest round of data puts the NDP in front on 33.8 per cent, the Conservatives in second on 29.2 per cent, and Trudeau’s Liberals in third on 27.5 per cent.

Meanwhile, Donald Trump, forever keen to hammer home his warnings of the dangers involving an over-reliance on Chinese economic output, took to social media to vent an ‘I told you so’ rant of his own.

The billionaire real estate mogul and G.O.P. presidential frontrunner seized on the stock-market decline, tweeting:






In a short video bearing the title “Depression - be careful of China” posted to his Instagram account, Trump said: “I’ve been telling everybody for a long time: China is taking our jobs, they’re taking our money, be careful, they’ll bring us down. You have to know what you’re doing. We have nobody that has a clue.”

Polling figures illustrate that Trump is pulling away from the pack in the race for the Republican Party’s presidential nomination.

According to a Reuters/Ipsos poll released Friday, nearly 32 per cent of Republicans surveyed said they are backing Trump, up from 24 per cent a week earlier.

Trump’s closest competitor, Jeb Bush, landed on 16 per cent, with retired neurosurgeon Ben Carson coming in third at 8 per cent.


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commented 2015-08-25 09:52:47 -0400
I find a good deal of dark irony in all these politicos railing on about how they control the economy and can fix this an that then right in mid rhetorical sentence the markets prove to be another force of nature (like the climate) that avaricious polis have no control over.

Personally I think the whole economic system has been mismanaged since the post WWII era – New Deal socialism was the death of laissez fare capitalism and the start of corporate banking-government debt-financing collusion. We built a post war nation on credit – by turning tangible currency into a fiat debt instrument then over inflating circulation to a point of stag-flation. The Markets react as one debt ridden over-inflated bubble collapses after another. Get used to market crashes and instability – it’s part of the debt trading system our markets have devolved to. A bubble “pops” because the inflated value collapses back to true value. The big one – the economic tsunami that ill wipe out currencies and national economies is yet to come, but it sits like a huge ticking time bomb waiting for maximum saturation to explode it. The derivatives and debt finance market – every major and central bank is invested in it and all it is is a vast sea of over inflated and unrecoverable debt which has fiat value attached to it for trading – the derivatives market (speculation on debt repayment) is far greater than all the wealth currently in circulation on the planet – some nations back their currency against this debt – can you imagine the implosion!

Buy- land, gold, water rights, food, and fuel – these will be the interim currency when the big bubble pops. And when it does and wipes out your savings, investments and RRSPs, remember 1974 – the year we went from debt free economy to debt financed economy. Blame IMF/BIS and the silly Keynesian dupes in the liberal finance committee who bought into private financing of national debt.
commented 2015-08-24 21:34:19 -0400
Cant wait to see the Libs and ND’s blame Harper for China’s screw up. China Girl fly upside down, have honable clac up! Blame the PM.
commented 2015-08-24 20:04:04 -0400
Bill said, “it’s the dippers that squeal the loudest.”

Yup, like stuck pigs.
commented 2015-08-24 19:16:15 -0400
+VLAD JOHNSON : The Majority of Alberta’s people voted for a party that has no clue where the income is. Ha ha. I live here. I bet the majority of the rest of Canada will do the same. The entire planet is turning upside down.

Let us not forget the years of Jean Chrétien and his Liberal party which led Canadians into trade with China many years ago. If I remember correctly Canada GAVE the Chinese 7 (SEVEN) CanDo Reactors in return for cheap crap made in China. It made his buddies millions of dollars on the backs of you and me. And we are still stuck with it because they are still making millions off of it. I did not understand back then (it really pissed me off), but I can see clearly now what all politicians actually do for us. They take our money and load up their friends pockets. They all do. Mulroney pocketed 300K in bribes that he admitted to (Air France) and gave us the GST, (Prick). Mulcair owes the Canadian Public around 3 million dollars in abuse of office space provided by you and me, giving it to his union cronies that of course are paying him off under the table (It is the Quebec way of doing business, being as corrupt as possible), and he is a Citizen of France. To me, this insult of him even running in an election with French Citizenship STINKS. Is he going to pay it back. Not a chance. The media are not even paying attention to this. But he is a citizen of France. Who is he really working for? It is just morally wrong. Don’t forget the liberals owe the Canadian Tax Payer, you and me, even more money (30 million or so maybe) and right now I guarantee that if they get into power, you will never hear another word about it as with the NDP’s debt. But we must not forget the Harper Government bailing out the big Auto Makers in 2008. That cost us 3.5 Billion dollars in losses and the Auto Makers packed up and left anyway. There is no telling how much fell into the pockets of the politicians on this deal, my guess is a whole bunch. So you learn to pick the one that does the least amount of damage. And out of the bunch we have now, I think it is Harper who will keep us on track for this war with ISIL and stand up for our allies in Ukraine and Israel. The young one is still trying to find his place in the sand box, no understanding why they owe 30 million and the bearded one just wants to get into my pocket first and then control my life second. Unfortunately, in this year thus far, Canadians have shown how stupid they really are (Alberta, letting media lie without penalty, people actually go to Green Party Rallies, and I am starting to become ashamed for my countrymen.
So the pick is going to be between….Two thieves and a Slim Ball. I remember a teaching of a man in between two thieves….
Happy voting everyone.
commented 2015-08-24 18:53:52 -0400
“one Canadian dollar now buys 76 U.S. cents”

The Saskatchewan Roughies have hired Mr Harper to go to the States in order to get their quarterback :)
commented 2015-08-24 18:51:43 -0400
Peter, point taken.. however, from my perspective, it’s the dippers that squeal the loudest.
commented 2015-08-24 18:47:31 -0400
Vlad Johnson said: “it is difficult to believe that the majority of Canadians are that fkg stupid as to choose a communist to run a weakening Canadian economy.” If the polls are to be believed and the brainwashing of the electorate successful by the Socialist Media, sadly this may be very true! I fear for the rest of us who see the truth!
commented 2015-08-24 18:46:00 -0400
If you look at Three Hundred Eight’s numbers closely, you can see that there really has not been a lot of change, with the Tories basically a solid second (and only about three to five points behind the NDP) and the NDP polling about 33-34% support and really only ahead in BC and Quebec on a regional basis. What’s really funny is to see the poll that made headlines earlier this month that had NDP support at 39% and the Tories at about 28 look really out of whack with basically all other surveys taken since and as a result looking rather silly (and possibly bogus as well).
commented 2015-08-24 18:43:13 -0400
Bill said, “Can’t wait for the dippers to blame the Chinese inspired market dip on PM Harper”

It won’t be just the dippers, but all the leftists in concert yelling as loud as they can in hopes that they can convince enough lemmings to vote for their party.
commented 2015-08-24 18:42:35 -0400
If I recall correctly, the last Major Market meltdown (depression of the “dirty thirties”) preceded WWII. Could history be repeating?
commented 2015-08-24 18:41:33 -0400
I am glad Harper is in charge of the economy. If Trudeau or Mulcair is in charge we would be spending, taxing, spending and taxing.

I know for myself, cumulative taxes reaching almost 50% of my income is far more than enough. I do not need any more that both Thomas and Justin will impose upon us.
commented 2015-08-24 18:28:49 -0400
Can’t wait for the dippers to blame the Chinese inspired market dip on PM Harper…. all the while forgetting the fact that any upward movement in the polls for the dippers leads to a mini market dip and a CDN$ dip.
commented 2015-08-24 18:15:00 -0400
Economically, Ontario, Alberta and Quebec are royally fkd!!! That means Canada goes into the toilet, and likely very soon.

The question is who do you want managing the downturn?? A couple of communist pigs, namely troodo and no-cair, or…

Considering ALL communist regimes have collapsed in the past, it is difficult to believe that the majority of Canadians are that fkg stupid as to choose a communist to run a weakening Canadian economy.
commented 2015-08-24 17:17:07 -0400
One can not help but laugh at Trudeau’s comments. Here Justin, when one thinks of China and it’s influence on the world economy, they should always remember Maurice Strong (Chairman Mo) who was a very prominent Canadian Liberal and very much influenced Canada’s increased ties with China under Jean Chretien and Paul Martin in particular. That is why things like the Kyoto Accord were Strong’s brainchild and constructed so much around heavily favouring China but taxing Canada and other First World nations big time.
commented 2015-08-24 17:04:22 -0400
Oh, and I can see how green energy scams and government spending would have really helped had we had the Liberals or NDP in charge for the last few years instead of Harper, considering the great economic miracles in Manitoba and Ontario.