Gloom, Doom, or Boom? Finance and Economics

Now, what news on the Rialto?
User avatar
Typhoon
Posts: 27242
Joined: Mon Dec 12, 2011 6:42 pm
Location: 関西

Re: Gloom, Doom, or Boom? Finance and Economics

Post by Typhoon »

FT | China market in focus after rate cut
China’s roller-coaster stocks will again be under the spotlight after the central bank cut benchmark interest rates to a record low at the weekend, a move interpreted by analysts as an attempt to temper last week’s market meltdown.

The Shanghai Composite sank 7.4 per cent on Friday, wiping hundreds of billions of dollars off the total market capitalisation of the index. The market has reversed 18.8 per cent from its June 12 high, although it is still up almost 30 per cent in the year to date.

The People’s Bank of China appeared to respond on Saturday, when it cut the one-year lending rate by 25 basis points to 4.85 per cent - its fourth cut since November - and lowered the amount of reserves certain banks are required to hold by 50 basis points.
May the gods preserve and defend me from self-righteous altruists; I can defend myself from my enemies and my friends.
Mr. Perfect
Posts: 16973
Joined: Mon Dec 12, 2011 9:35 am

Re: Gloom, Doom, or Boom? Finance and Economics

Post by Mr. Perfect »

Typhoon wrote:Why Liquidity-Starved Markets Fear the Worst
Talk to almost any banker, investor or hedge-fund manager today and one topic is likely to dominate the conversation. It isn’t Greece, or the U.S. economy, or China, let alone the U.K.’s referendum on European Union membership. It is the lack of liquidity in the markets and what this might mean for the world economy—and their businesses.

Market veterans say they have never experienced conditions like it. Banks have become so reluctant to make markets that it has become hard to execute large trades even in the vast foreign-exchange and government-bond markets without moving prices, raising fears investors will take unexpectedly large losses when they try to sell.
After record liquidity injections.

Anyone want to guess as to why?
Censorship isn't necessary
User avatar
Typhoon
Posts: 27242
Joined: Mon Dec 12, 2011 6:42 pm
Location: 関西

Re: Gloom, Doom, or Boom? Finance and Economics

Post by Typhoon »

WSJ | China to Set Up Fund to Curb Stock Selloff

The old-school idea that the markets are a mechanism for price discovery is globally dead.
May the gods preserve and defend me from self-righteous altruists; I can defend myself from my enemies and my friends.
User avatar
Typhoon
Posts: 27242
Joined: Mon Dec 12, 2011 6:42 pm
Location: 関西

Re: Gloom, Doom, or Boom? Finance and Economics

Post by Typhoon »

China stock markets continue to crumble.

The politics of China’s stock market collapse
So while every international affairs pundit and their mother are focused on the travails of an economy the size of Louisiana, the second-largest economy is experiencing a teeny-weentsy stock market meltdown.
Price discovery goeth before pride which goeth before the fall.
May the gods preserve and defend me from self-righteous altruists; I can defend myself from my enemies and my friends.
User avatar
Typhoon
Posts: 27242
Joined: Mon Dec 12, 2011 6:42 pm
Location: 関西

Re: Gloom, Doom, or Boom? Finance and Economics

Post by Typhoon »

I was talking to a friend in China yesterday, he said that not only individuals have been using margin,

but public companies have been using their shares are margin collateral . . .
May the gods preserve and defend me from self-righteous altruists; I can defend myself from my enemies and my friends.
User avatar
Typhoon
Posts: 27242
Joined: Mon Dec 12, 2011 6:42 pm
Location: 関西

Re: Gloom, Doom, or Boom? Finance and Economics

Post by Typhoon »

May the gods preserve and defend me from self-righteous altruists; I can defend myself from my enemies and my friends.
User avatar
Heracleum Persicum
Posts: 11567
Joined: Sat Dec 22, 2012 7:38 pm

Re: Gloom, Doom, or Boom? Finance and Economics

Post by Heracleum Persicum »

.

Data point to poorer global middle class
The global middle class is both smaller and poorer than previously thought


Despite vast changes in China and other parts of Asia, there has only been incremental progress in large parts of the developing world. Just 16 per cent of the world’s population lives on incomes that would take them safely above the US poverty line.

..

“The global middle class is smaller than we think, it is less well off than we think, and it is more regionally concentrated than we think,”

Screen Shot 2015-07-09 at 11.29.39 AM.png
Screen Shot 2015-07-09 at 11.29.39 AM.png (92.13 KiB) Viewed 1873 times
.

.
User avatar
Typhoon
Posts: 27242
Joined: Mon Dec 12, 2011 6:42 pm
Location: 関西

Re: Gloom, Doom, or Boom? Finance and Economics

Post by Typhoon »

FT | China rout staunched but for how long?

To be fair, in the West, massive QE has helped markets attain post-2008 highs.
May the gods preserve and defend me from self-righteous altruists; I can defend myself from my enemies and my friends.
User avatar
Nonc Hilaire
Posts: 6168
Joined: Sat Dec 17, 2011 1:28 am

Re: Gloom, Doom, or Boom? Finance and Economics

Post by Nonc Hilaire »

Typhoon wrote:FT | China rout staunched but for how long?

To be fair, in the West, massive QE has helped markets attain post-2008 highs.
First come the bubbles, and then comes the bath.
“Christ has no body now but yours. Yours are the eyes through which he looks with compassion on this world. Yours are the feet with which he walks among His people to do good. Yours are the hands through which he blesses His creation.”

Teresa of Ávila
noddy
Posts: 11318
Joined: Tue Dec 13, 2011 3:09 pm

Re: Gloom, Doom, or Boom? Finance and Economics

Post by noddy »

china is like the usa and unlike greece in that it can have hiccups but the market is too large and important for it to be completely abandoned without almost end-times levels of disaster.

they will print their way out of it like america does and the less well connected will get screwed by it and that will be that.
ultracrepidarian
Mr. Perfect
Posts: 16973
Joined: Mon Dec 12, 2011 9:35 am

Re: Gloom, Doom, or Boom? Finance and Economics

Post by Mr. Perfect »

The great leftist STPN Democrat march of doom and death is indeed inevitable. Some would rather die than admit they were wrong, or be wrong. Imagine, teabaggers being right about everything.

http://www.ft.com/cms/s/0/82737cca-39f2 ... z3i7LZgDWD
A well-known fund manager who foresaw the Japanese crash, the dotcom bubble and the global financial crisis has predicted that markets will be “ripe for a major decline” some time in 2016, potentially triggering government bankruptcies.

Jeremy Grantham , founder and chief investment strategist of GMO, a $118bn investment house based in Boston, expects the stock market to continue to march higher in the coming year, eventually sucking in retail investors and setting up a serious decline around the time of the US elections in late 2016.

The famously bearish and often prescient money manager said this could trigger a “very different” type of crisis, because many governments had become considerably more indebted and much of the liabilities had shifted to the balance sheets of central banks.

Given that central banks were able to create money to recapitalise themselves, this “could be a crisis we could weather”, Mr Grantham said. “If not, then we’re talking the 1930s, where you have a chain-link of government defaults.”
Censorship isn't necessary
User avatar
Typhoon
Posts: 27242
Joined: Mon Dec 12, 2011 6:42 pm
Location: 関西

No Yuan knows the trouble I've seen . . .

Post by Typhoon »

May the gods preserve and defend me from self-righteous altruists; I can defend myself from my enemies and my friends.
User avatar
Heracleum Persicum
Posts: 11567
Joined: Sat Dec 22, 2012 7:38 pm

Re: Gloom, Doom, or Boom? Finance and Economics

Post by Heracleum Persicum »

PCAFnCo6nyM
99Sf918pUkQ
User avatar
Heracleum Persicum
Posts: 11567
Joined: Sat Dec 22, 2012 7:38 pm

Re: No Yuan knows the trouble I've seen . . .

Post by Heracleum Persicum »



Trump :
Yuan devaluation will be ‘devastating’ to US competitiveness


“They’re just destroying us,” the real estate tycoon turned Republican presidential candidate said in a CNN interview Tuesday. “They keep devaluing their currency until they get it right. They’re doing a big cut in the yuan, and that’s going to be devastating for us.”
.
Mr. Perfect
Posts: 16973
Joined: Mon Dec 12, 2011 9:35 am

Re: Gloom, Doom, or Boom? Finance and Economics

Post by Mr. Perfect »

Trump is now the go to us commentator as opposed to say Democrat obama or Clinton.
Censorship isn't necessary
Mr. Perfect
Posts: 16973
Joined: Mon Dec 12, 2011 9:35 am

Re: No Yuan knows the trouble I've seen . . .

Post by Mr. Perfect »

I know someone who says the infrastructure is amazing, so probably nothing to see here.
Censorship isn't necessary
User avatar
Heracleum Persicum
Posts: 11567
Joined: Sat Dec 22, 2012 7:38 pm

Re: Gloom, Doom, or Boom? Finance and Economics

Post by Heracleum Persicum »

Mr. Perfect wrote:Trump is now the go to us commentator as opposed to say Democrat obama or Clinton.

Warren Buffett said Trump support "SOLID"

Trump is "Joe speakin" .. Hillary and Jeb beat each other in fake'ness .. they the worst case scenario for America

.
User avatar
Typhoon
Posts: 27242
Joined: Mon Dec 12, 2011 6:42 pm
Location: 関西

Re: No Yuan knows the trouble I've seen . . .

Post by Typhoon »

Mr. Perfect wrote:
I know someone who says the infrastructure is amazing, so probably nothing to see here.
What the relationship between the two?
May the gods preserve and defend me from self-righteous altruists; I can defend myself from my enemies and my friends.
User avatar
Typhoon
Posts: 27242
Joined: Mon Dec 12, 2011 6:42 pm
Location: 関西

Re: Gloom, Doom, or Boom? Finance and Economics

Post by Typhoon »

May the gods preserve and defend me from self-righteous altruists; I can defend myself from my enemies and my friends.
noddy
Posts: 11318
Joined: Tue Dec 13, 2011 3:09 pm

Re: Gloom, Doom, or Boom? Finance and Economics

Post by noddy »

this round of chinese 'correction' is definitely interesting, its smashing the hell out of my country.

its almost enough to fire up the doomer pron fan in me :)

almost, but not enough.
ultracrepidarian
User avatar
Typhoon
Posts: 27242
Joined: Mon Dec 12, 2011 6:42 pm
Location: 関西

Re: Gloom, Doom, or Boom? Finance and Economics

Post by Typhoon »

noddy wrote:this round of chinese 'correction' is definitely interesting, its smashing the hell out of my country.

its almost enough to fire up the doomer pron fan in me :)

almost, but not enough.
China share collapse drives panic selling in Asian markets

https://www.google.com/finance?chdnp=1& ... bGUYfmraAC

Plowed through the apparatchik's line in the sand of 3,500 pausing only to kick the CPC in the cojones.

It's almost enough to fire up the bargain hunting fan in me, however, I'd like to see more blood running in the streets first.

Or, in the case of China, more CPC cobblers rolling down the streets. :wink:
May the gods preserve and defend me from self-righteous altruists; I can defend myself from my enemies and my friends.
Mr. Perfect
Posts: 16973
Joined: Mon Dec 12, 2011 9:35 am

Re: Gloom, Doom, or Boom? Finance and Economics

Post by Mr. Perfect »

Typhoon wrote:WSJ | China to Set Up Fund to Curb Stock Selloff

The old-school idea that the markets are a mechanism for price discovery is globally dead.
Boy were you wrong about that.
Censorship isn't necessary
User avatar
Typhoon
Posts: 27242
Joined: Mon Dec 12, 2011 6:42 pm
Location: 関西

Re: Gloom, Doom, or Boom? Finance and Economics

Post by Typhoon »

Mr. Perfect wrote:
Typhoon wrote:WSJ | China to Set Up Fund to Curb Stock Selloff

The old-school idea that the markets are a mechanism for price discovery is globally dead.
Boy were you wrong about that.
How so?
May the gods preserve and defend me from self-righteous altruists; I can defend myself from my enemies and my friends.
Post Reply