Posted on 01/10/2016 9:17:29 PM PST by TigerClaws
Chinese stocks opened lower Monday, moving deeper into negative territory after a brutal first week of the year.
The Shanghai Composite fell 2.4% at the open, and the Shenzhen Composite dropped 3.2%.
(Excerpt) Read more at money.cnn.com ...
Geronimo is gonna be a new word in the Chinese vocabulary.
Down 3%. Another rough week and will takes us to 2008.
Gelonimo!
You made me spit my gin on the screen. Good job!
Good, Red China is our enemy, and now maybe they’ll have to spend more time with their financial problems, rather than hurting us, and our allies.
Red China is more of a threat to us than many realize.
Went to the link and watched a CNN video of a pompous dweeb lecturing that China is just shifting from Government stimulus to a consumer demand driven economy, and that necessarily caused the slowing that we see - “Don’t bet against the world’s second largest economy” he (apparently a communist lapdog) advises.
By misidentifying the problem, he misidentifies what investors should do.
China has shifted from a rising demographic wave providing strong stimulus, to a a declining demographic trend that will be a drag on performance for about a generation - thanks to their one child policy.
China is no longer the low cost producer for manufacturing. New foreign investment flows have been increasingly going elsewhere for several years - net foreign investment has has gone negative.
Capital is fleeing China at an increasing rate, as wealthy Chinese are trying to get themselves and their assets out.
China has a gigantic debt bubble - their banking system is a house of cards.
If the communist government keeps burning through their foreign reserves like they did last month (Dec 15), they will start hitting hard constraints this year, and zero out next year - faster if things get worse.
The currency looks to be heading for another devaluation, maybe chopping another 15% off the value of their whole economy.
Political stability in China is more shaky than it has been over the last couple of decades, as the communist party has eaten some of its own - even on the Politburo.
The boomtown party is over in China, and things could get a lot worse there.
There was an admission that the fed had created he American stock market bull run in 2009 and that they were ‘out of ammunition’ by a central banker. We are headed back to 15,000.
Down 5.3%
They shut it down if it hits 7%.
I know! They should build a couple of empty cities that no one can afford to live in. It will look great on the books, a few party members will make millions and it will look like the nation is in a indefinite growth period. Oh wait...
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