Similarities Between China’s Stock Market Crash And 1929 Are Eerie

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Submitted by Money Morning’s David Zeiler via Contra Corner blog,

For students of history, the China stock market crash looks eerily familiar.

It?s playing out much like the Wall Street stock market crash of 1929.

In case you?ve been distracted by such things as the Greek debt crisis and a bizarre glitch that shut down the New York Stock Exchange for more than three hours Wednesday, the Chinese stock market has been in a free fall lately.

Although it rebounded late last week thanks to more government intervention, the Shanghai Composite Index has shed 29% over the past month.

An equivalent loss for theDow Jones Industrial Average would be a drop of more than 5,100. Paper losses already exceed $3.25 trillion.

This follows a dramatic run-up of 150% in the 12 months leading up to mid-June.

That?s disturbing enough, given how interdependent the global economy is…

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