Posted on 07/07/2015 11:28:26 AM PDT by Perseverando
Although it’s not possible to know exactly what the mood is among Party officials in China regarding the inexorable slide in stock prices that’s unfolded over the course of the last three weeks, it’s reasonable to assume that at least some officials in Beijing are in the throes of Politburo panic after watching some $3 trillion in market value disappear into thin (and probably polluted) air.
Amid the turmoil, China has resorted to an eye-watering array of policy maneuvers, pronouncements, and plunge protection schemes aimed at arresting the slide.
Nothing has worked.
Not suspending compulsory liquidation for unmet margin calls, not billions in committed market support from brokerages, not a PBoC backstop for the CFSC, and not even a ban on selling by the Social Security Council.
For reference, here (courtesy of Bloomberg) is an annotated chart of the wild ride Chinese stocks have had in 2015:
And so, with every attempt to manipulate the market higher falling flat in the face of selling pressure from the hairdresser/ farmer/ banana vendor day trading crowd (which has now thrown in the towel on the whole “it’s easier than farm work” theory and now just wants to break even and head for the hills) the only thing left for China to do is “fix” the narrative.
In other words, when banning selling doesn’t work, the logical next step is to ban talking about selling. Here’s FT with more:
Shares have shed some 30 per cent of their value since mid-June, punishing small investors, some of whom have borrowed heavily to jump on board what had been a spectacular bull run.
“There is a panic but no matter how they [the authorities] jump in, this thing just doesn’t stop falling,”
(Excerpt) Read more at zerohedge.com ...
I agree with the Chinese decision to ban those terms because “clusterf***” and “apocalypse” are so much more accurate!
Looks like a classic “head and shoulders” is setting up. The next round of losses will be brutal. Unfortunately, they have stopped allowing short selling.
Chicom fire drill....
I guess those are right up there with “melting pot” and “land of opportunity”, as per what California universities think of those aforementioned terms.
So many Americans have gotten into bed with the chinese, that a market crash there will pretty much destroy the US manufacturing base.
If you think I'm wrong, inter modal container traffic into the US from china is at record highs. And all of those containers are full of everything that you buy and use to build things with everyday.
If the chinese economy goes down, they take the US economy down with them.
People don't realize just how much of the US manufacturing and engineering base has been moved to china. The numbers are staggering.
How very....Obamunistic...of them.
Yeah right. And, oh, all that negativity against gold. Looks like in a few days, if YOU are right, gold will be about the only thing of real value.
Hey China: The sky is falling. Run around like chickens with their heads cut off. It’s a national Chinese fire drill. Flee for your lives. You’re DOOMED! It’s the end of the world. There’s no tomorrow! PANIC PANIC PANIC!
And if you want to press the issue, you'll have to take it up in a chinese court. Good luck with that.
As far as gold goes, the pacific rim nations are gobbling it up as fast as they can find it.
Wi Tu Lo
Your post made me laugh!
Nobody is talking about this in the US. It’s about Greece and a little about PR.
This is giant. Little guys over there were already in up to their ears on Real Estate scams the government set up for them. 28 cities with nobody living in them. Nobody.
“Just hang on to that. Eventually folks from the farm country will move in there.”
There are some huge, huge things on the immediate term horizon about to pop.
China should build another ghost city. That will shore up their “fauxconomy”.
I agree! I am not a Mormon but I highly recommend considering their advice on putting up a year's supply of food and sundries just in case there are hard times. Because if things come apart it will happen so fast there won't be time to stock up before the "Gibmedats" go wild in the cities.
Although it’s not possible to know exactly what the mood is among Party officials in China regarding the inexorable slide in stock prices that’s unfolded over the course of the last three weeks, it’s reasonable to assume that at least some officials in Beijing are in the throes of Politburo panic after watching some $3 trillion in market value disappear into thin (and probably polluted) air.
...
Easy come, easy go. Their market is still well above where it was a year ago.
How do you figure that?
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