Posted on 01/03/2016 11:02:35 PM PST by Zakeet
Following the initial halt in CSI-300 Futures at the 5% limit down level, the afternoon session opened to more carnage and amid the worst 'first day of the year' in at least 15 years, Chinese stocks collapsed further to a 7% crash. At 1334 local time, stock trading was halted for the rest of the day across all exchanges (at least two hours early).
[Snip]
Dow futures are now down over 150 points from NYE close, Gold and Treasuries are bid, and offshore Yuan has plunged most since the August devaluation.
(Excerpt) Read more at zerohedge.com ...
Wow. No mention of Big Government taxation and regulation.
"It's China...China...China"!
Pretty stupid video if I say so myself.
My assumption is that smart people already have enough guns and ammo for themselves, and their family, friends and neighbors.
You don’t fight govt and regs and taxation by ruining your industrial base that is just plain stupid.
What?
Fighting government taxation on businesses and regulations on businesses helps your industrial base. It's stupid to not even mention that as a problem. And you didn't mention it as a problem.
Ping for discussion.
If you are one of those folks who can read the market with reasonable accuracy and you detect a panic-plunge coming that would persist for a bit, would it make sense to stop paying into your 401k and borrow the max allowed out of it — don’t spend it, just sit on it until the panic subsides, then pay back the loan in full? I know you’d have to make payments to yourself in the meantime, but it seems like a legal way to minimize how much of your 401k is exposed to the crash. Just pondering - I’m certainly no expert.
How'd that work out for Social Security?
Accruing more debt isn't the answer. The more participants in the market makes it more free. Do some research and make level-headed decisions you're comfortable with.
You don’t fight regulations and taxes by OFFSHORING your industrial base. That is just plain stupid. That is like burning down your house because it needed a paint job.
As for your fourth reference......I've seen several programs etc. of foreign investors in China, the difficulties with which they have to do business with the Chinese as it appears many can't get a grasp of the requirements nor understanding of because the Chinese don't actually understand them....so the "rules" appear to be made as they go along, and this with the idea of the degree of leverage they can and do accumulate along the way.
Additionally though the Chinese say they want to have free trade and open markets they still see foreigners as untrustworthy so their expectations are "be ready to be had".
All this massive building in China, from bridges, to speed rails, real estate facilities of the biggest, tallest, fastest worldwide appears to be their "calling card" that China is open for business on a grand scale. Yet their business people seem to be lost in the process of catching up to "business practices" understood on the World Stage...so they operate by the seat of their pants....trial and error.
What I was thinking about was not more debt — it was a way to move money *out* of the 401K if you felt a panic crash impending. That way, less of your 401K would be at risk.
You wouldn’t *spend* the money you borrowed, just sit on it *outside* of the 401K. When the panic crash was over, you put it right back in.
While you were sitting on it, it would not be accruing any gains, but if the market is tanking, you aren’t losing any of the amount you were able to pull out either.
So, if you withdraw - you get hit with taxes and penalties. If you take a 401k loan, no taxes, no penalties - you just have to repay it in full before you change employers.
It seemed to me like a way to legally protect at least half your 401K in a short-term crash. Rather, instead of risking 100% of your 401k, you would only have 50% still in the account at risk. The 50% I borrowed would be in my gun safe not accruing any gains, but not getting eaten alive during the crash either. I’d just pay the loan back in full when the market started rebounding — which might allow me to buy more shares (buying back in at the lower share price) than when I took the loan.
It seems legal. But probably too good to be true. There must be something I’m not knowledgeable enough to take into consideration that would spoil the plan...
Of course I know.....but their stop measures are NOT going to be “the same” as you stated nor are they, which is obvious to any who’ve read the article and looked further than just what’s posted.
BTW I’ve run into you on past treads and not particularly interested in your style of posting....so I’ll go back into the “Don’t interrupt me while I’m ignoring you mode”.
China’s right in line with Gore......they are rapid in their use of solar and alternative sources of energy.....He loves them!
Meanwhile China’s all over in Africa as well.
I’m not for Trump either...but that doesn’t mean I can’t see the humor in the guy....and he doesn’t even have to try! He’s a character that’s fun to observe for you never know what’s going to tumble out of his mouth to get the next “charge” he’s looking for.
There would be much less offshoring if we didn't have high taxes and regulations on companies here!!
Get it?
Probably not.
All press is controlled...not just Eastern nations.....I’ve never seen such control of our press as we’ve witnessed in the last couple of decades.....as a nation we are kept in the dark on world affairs as they are...if we hear at all!
....”The ‘emerging markets’ are doing nothing to create real wealth. They simply parasite on the wealth of other nations.”......
Needs repeating because it’s a truth often lost in the equations we’re fed. ....Our largest export is American tax dollars overseas.
....”A global “reset†is about to occur”....
Would be interested in what you might think it would look like, would you care to enlarge?
Not defending taxes but the corporate taxes on profits adds a penny or two to the retail price per unit dollar cost. Regulations probably less so. Those things would lower retail costs to the consumer but not by much. I am in favor of tariffs over all forms of income taxes.
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