re: What are your thoughts on the Chinese stock market plunge?

Yet, you try to avoid? WhyM

Just figured someone who champions the Ds as the party of science would be an avid supporter of science, ya know. Not a, well I try to avoid it type of person...

Not that worried about the Shanghai drop. The stock market in China is much less a part of their economy than it is in the US. It *does* matter, it just isn't as big a deal as it would be for us if the Wilshire dropped 30%.

Nor am I worried about Greece - it is a small part of Europe and has been on life support for a long while anyway.

What's the story here?

Is this Rex? his wife? ex wife?

or

The female version of Rex?

"China has been cooking their financial books for a long time. They are building and building and building to keep up appearances in places where there is no demand. There are entire cities, designed to accommodate millions of people, sitting empty because there is no demand for them. China's growth has been an unsustainable farce. As that slowly becomes more evident, the house of cards the Paper Tiger has built is becoming more evident. "

This.

It's a communist country with an extreme aristocracy that has existed for over 60 years and a burgeoning "middle class" by their standards. They've been transitiong from an export driven model to a consumption driven model, and have been even before the transition for Jiabao to Jingping. Unfortunately for them they are now operating in the area of no economic model.

Also for everyone trying to parallel China and Greece to the United States... please just stop. The United States is far and away the strongest economy in the world. The reason China has been able to stabilize their economy for over a decade is from growing their reserves of US dollars and Treasuries. Unfortunately for them their FX reserves of dollars is getting pretty damn low from what we can discern.

The equity slump in Shanghai won't cause the country to implode. If the shadow banking trusts, some of whom could indirectly depend on equity financing, start to be unable to roll their maturities then that would absolutely cause a shite storm.

And because she reinvests the trust fund money, she believes she is self sufficient.


Eta Benny give us ur best guess on what oil does short and long term.

Thanks, I read as a few years around 50/60, barring something major of course.

I am thinking that the Chinese gov is going to have to keep the gamblers out of the system. I'm having a flashback to 1984...sitting with my husband on a rundown gambling boat in Macau. This is all pre china takeover and before Vegas descended on the formerly Portuguese Macau.

We were the only 2 westerners on the boat and I was in awe of the rabid gambling surrounding me. Fast forward to 2015 and when the gov put a floor under the rise in property spec and frowned upon citizens going to the Macau Casinos, there was no place else to gamble but the stock markets and ETF's. Ta Da the parabola. Pile on the amount of margin used to execute the trades and this will not be pretty.

When margin calls, one has to sell something else to meet the call. Starts a chain reaction. I am thinking that the US markets could get an influx of scared money from around the world. Our turn comes maybe 12-14 months later.