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How A Chinese Farmer Lost More Than Everything Trading Stocks
Zero Hedge ^
| 07/28/2015
| Tyler Durden
Posted on 07/28/2015 7:40:29 AM PDT by SeekAndFind
Last night, just six weeks after one Chinese farmer Liu Jianguo invested his life savings in the Chinese market, proclaiming "it's a lot easier making money from stocks than farm work," we wondered if it was time for a sequel:
A few hours later we find out that it was because as CNBC reported in its sequel, another farmer has lost it all... and more. As CNBC's Eunice Yoon reports, just a few weeks after his glorious gamble in China's manipulated market, the farmer "trader "now owes - thanks to wonders of margin calls and leverage - as much as he originally invested.
From the hope-filled exuberance of early June to Yang Cheng's utter hopelessness, "I have lost everything," after he followed the government's 'grand plan' to open the economy and encourage stock market speculation.
Having piled his life savings (plus his relatives' money) into the market, thanks to encouragement from his broker he borrowed $1 million in margin and bet it all on one stock - a local mining company.
Now, after being forced to liquidate by the same risk-encouraging brokerage, he has suffered catastrophic losses... and he is not alone...
"I don't know what to do... I trusted the government too much..." he exclaims, adding "I won't touch stocks again, I have ruined everyone in my family."
CLICK ABOVE LINK FOR THE VIDEO
We can only hope Yang Cheng's breakdown at the end will serve as a lesson to those betting on "The Fed has your back," or whatever meme the moment requires.
TOPICS: Business/Economy; Society
KEYWORDS: china; chinacrisis; communism; crash; farmer; redchina; stockmarket
To: SeekAndFind
Poor guy. Wasn’t it Deng who said, “To be rich is glorious?”
Sometimes you get the bear, sometimes the bear gets you.
To: Pearls Before Swine
To: Pearls Before Swine
If you’re gonna have to “owe”, owe big....too big to fail...
4
posted on
07/28/2015 7:44:22 AM PDT
by
Gaffer
To: SeekAndFind
To: Gaffer
To: SeekAndFind
The last thing you allow communists to have is a stock market, because they are always working to
destroy capitalism. Was not Marx clear enough in his intent?
My object in life is to dethrone God and destroy capitalism.
Hence, having a stock market in a communist country is not only intended to suck in foreign capitalists and steal all their money, but to also indoctrinate their masses of just how evil capitalism is and how everyone must embrace socialism first and the ephemeral communism second.
7
posted on
07/28/2015 7:46:49 AM PDT
by
Olog-hai
To: Pearls Before Swine
To: SeekAndFind
To hear this news about the Chinese stock market, just reinforces my own confusion about China. They are officially communist, but have instituted many free market reforms in recent years. There are many millionaires in China, people who run companies and have made millions running their businesses. Yet supposedly private ownership of that manner is banned under communism.
Perhaps we can say that the Chinese have a system of government controlled corrupt capitalism??? They still do not have political freedom. The communist party is still in control and do not allow free elections.
To: Pearls Before Swine
There was an old story about a farmer, upon retiring from farming, bought into a hardware store. One day, one of the suppliers was visiting, and looking through the stock, saw the newly-minted merchant was selling hammers for $1.25.
“Man!” exclaimed the supplier. “Don’t you realize you are paying $13.46 each for those hammers wholesale? How can you be making any money doing that?”
The one-time farmer replied, “Oh, I dunno, but it STILL beats farming!”
10
posted on
07/28/2015 8:02:54 AM PDT
by
alloysteel
(If Stupidity got us into this mess, then why can't it get us out? - Will Rogers.)
To: SeekAndFind
Writing naked puts? Yuan cost averaging?
11
posted on
07/28/2015 8:13:49 AM PDT
by
tbpiper
To: SeekAndFind
"I don't know what to do... I trusted the government too much..." he exclaims, adding "I won't touch stocks again, I have ruined everyone in my family."Heartbreaking lesson to learn.
To: SeekAndFind
Last night, just six weeks after one Chinese farmer Liu Jianguo invested his life savings in the Chinese market, proclaiming "it's a lot easier making money from stocks than farm work," It's easy to see after the fact but a contrarian would look at an article like this and say "uh oh, people who know nothing about the market are putting their life savings in because everyone knows it's easy money. Time to bail!"
Full disclosure, I have a sliver of my own investments in international primarily because all the experts insist it's a hedge. But I keep it small because I don't trust the communists, dictators, and entrenched bureaucrats in other countries to run their markets or the economies well or fairly. The US pack of regulators, bureaucrats, and corrupt politicians are at least a devil I know.
13
posted on
07/28/2015 8:58:02 AM PDT
by
pepsi_junkie
(The only fiscally sound thing dems ever did: create a state run media they don't have to pay for)
To: Pearls Before Swine
Poor guy. Wasnt it Deng who said, To be rich is glorious?Maybe one of those pilots, "Sum Ting Wong"
14
posted on
07/28/2015 9:07:43 AM PDT
by
DCBryan1
(No realli, moose bytes can be quite nasti!!)
To: Pearls Before Swine
Zen tells us, “To know contentedness is to be rich.”.
15
posted on
07/28/2015 9:11:14 AM PDT
by
tet68
( " We would not die in that man's company, that fears his fellowship to die with us...." Henry V.)
To: SeekAndFind
It’s not possible to lose more than everything.
16
posted on
07/28/2015 6:58:57 PM PDT
by
Oztrich Boy
(Palins are better parents than Clintons.)
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