Financial market woes

I highly doubt there will be a "crash". This is more of a "correction". The prices have been too high for too long, and many people have been expecting a drop. Some have been expecting it since 2012, I've personally been expecting it this year or first half of next year.

Honestly, I think the impact will be fairly minimal by any measure. The Chinese will be going through some pain, but in Britain and the EU there will be an impact in the short term, but I fully expect it to be business as usual after a few weeks of a bumpy ride. This is not another 2008. Probably.

The Chinese economy is having to transition from a manufacturing economy to a consumer economy, and that will be painful for them. The Chinese government interfering with the market like this will only delay the inevitable and will probably make it worse in the longer term. The government is learning some painful lessons about how much they can control.

I wrote a blog about this here - www.investup.co/news/How-the-global-turmoil-will-affect-crowdfunding/

In short it could be a good opportunity for crowdfunding to grow and become more mainstream.

But then again who really knows. As Ribs says transitioning China into a consumer economy at that scale is brutal. The global markets are fickle beasts and probably far too intertwined so expect choppy times.

I wouldn't expect a massive impact to P2P or P2B really. Non-Chinese bank exposures to China are very small because it has always been hard as an "outsider" to do business there. During the last crisis the problem was that banks were exposed to losses directly. In this case, HSBC and Standard Chartered are probably the only two UK banks with any decent exposure, and it is probably negligible in the grand scheme of things.

China is selling down some of its US Treasuries and that will cause a bit of a tremor because they have so many of them.... but that very fact means that they will never dump so many that they incur massive mark-to-market losses. It will make treasuries a little cheaper vs LIBOR and that means that credit will become a little more expensive, buy you are only looking at a 0.1-0.3% move I suspect. That won't be enough to cause too much of a bump.

The bigger driver is cashflows.... I don't think that Monday was a blip - I personally think that equities are massively over-valued and that Monday was advance warning that their is an inherent weakness there. As more people start to think that, you'll see more people looking to move out of equities and into other things.

Although his role in investUP is in his profile he doesn't state his massive COI in the piece...He seems to imply that he is a novice crowdfunder rather than the COO of an ambitious platform supermarket!