Posted on 08/26/2015 4:16:06 AM PDT by blam
David Scutt, Business Insider Australia
August 26, 2015
Despite further monetary policy easing from the People's Bank of China and restrictions on some forms of futures trading, Chinese stocks fell yet again on Wednesday.
Whatever word you choose to describe it — chaotic, wild, skittish, or others — the movements during the session were ridiculously rapid.
Stocks opened higher, then tanked, then roared higher again before sliding into the close.
It's truly head-spinning stuff, but increasingly familiar for those who have been watching closely.
(snip)
(Excerpt) Read more at businessinsider.com ...
Frequent, high amplitude moves. Sounds familiar.
The reason is obvious. Direct intervention by the Communist party buying stocks trying to keep their market in an upward movement or at least above the 3,000 mark. I was watching it live and could predict when the party stopped making buys.
The Chicoms did battle with everybody selling, essentially, and still lost. They lost a whole lot of freaking money doing that too.
If you believe that this may indeed be the beginning of a major market crash, as I do, where in the world do you put your investment assets today?
Gold and silver have their limits and while their prices are depressed, are not an investment - some are predicting a fall to $500/oz. when the SHTF.
Cash?
Yeah, I’ve read most of the books, but none have practical solutions. Sending my assets out of the country where it may never again be accessed? No way.
Any wisdom is appreciated........
-——Whatever word you choose to describe it ——
the most accurate descriptive is Chicap panic
Chicap exuberance and ignorance overcame market reality. The market reality is now taking control and the clueless Chicoms have seemingly lost control of the uncontrollable
Color me skeptical.
Walk out into a crowd and start throwing money. Although you might at first be able to throw money faster than the people can grab it up, the very nature of your action draws an abundance of grabbers, until it is very quickly physically impossible for you to throw it, faster than it can be scooped up.
Thus is the nature of throwing money at a tanking market to arrest its fall.
“The Chicoms did battle with everybody selling, essentially”
They are dumping lots of their money into the market, but the article mentions that they are particularly targeting the stocks of the State-owned banks.
A banking crisis would threaten the regime even more than a total stock market collapse.
‘unexpectedly’
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.