Is China crashing?

[michaelscott]

If you havent figured it out yet, thats the chart of the NDX from 2000. Its not the Shanghai, but the theory is the same. Greenspan cranking up rates trying to cool the stock market off and wham.

Chinese officials cranking up the tax to cool the stock market off and wham.

This will fall considerably and will reach shocking lows just like in 2000.

 

[noddyboy]

Quote from michaelscott:

If you havent figured it out yet, thats the chart of the NDX from 2000. Its not the Shanghai, but the theory is the same. Greenspan cranking up rates trying to cool the stock market off and wham.

Chinese officials cranking up the tax to cool the stock market off and wham.

This will fall considerably and will reach shocking lows just like in 2000.

wow...masssive pain...lots of people with life savings wiped out. I guess the maids that quit in Shanghai have to go back to work.

 

[Bogan7]

Quote from noddyboy:

wow...masssive pain...lots of people with life savings wiped out. I guess the maids that quit in Shanghai have to go back to work.

yep the thng to be gleaned from this is that the rest of the whole doesnt really care and it is not going to cause the domino effect the bears are praying for. Will I dont think it will

 

[noddyboy]

Quote from Bogan7:

yep the thng to be gleaned from this is that the rest of the whole doesnt really care and it is not going to cause the domino effect the bears are praying for. Will I dont think it will

To the extent that Goldman marks to market its investments in China, GS stock should go down at least.

 

[kiwi_trader]

Quote from Bogan7:

yep the thng to be gleaned from this is that the rest of the whole doesnt really care and it is not going to cause the domino effect the bears are praying for. Will I dont think it will

Unless the bulls are bullish because asia keeps going up. Certainly there is a strong case for that in Aus.

A more likely down scenario is softening of US/Eur demand for goods = loss of demand for china = loss of demand for minerals = a large shorting opportunity.

Or "everyone starts to do (yes, actually do) something about greenhouse gas reduction" = slowing growth = penalty tarrifs for China because they don't do anything about greenhouse gasses = chopped asian growth = see the last scenario

 

[pumpanddumper]

Quote from The Kin2:

Where did you get this quote from?

http://finance.yahoo.com/intlindices?e=asia

I use that for world indices before I go to bed. 20 minute delayed though...

I was expecting a little bounceback tonight but keep letting the bottom fall out. Too bad the Dow can't fall like that, have to wait for October...lol

The Shanghai is in its own inflated world and will have no effect on world index's tomorrow. 3000 would be a nice even number by the end of the week after she cools off.

 

[The Kin2]

Thanks! The Chinese Market reminds me of a pump and dump scheme, just on a slightly larger scale .

 

[Comanche]

The difference with the chinese markets from ours is the mentality of the investor. We are not a nation that prides ourselves on saving, hell, we are in a negative savings rate now for awhile.

The Asians do pride themselves with saving, a lesson we all should learn. The idea of investing in a market that keeps going up 1+% a day seems like a no brainer even to the most un-sophisticated investor, UNTIL THEY LOSE $$$$$!!!

What seperates the Asians from us is the risk factor. Asians will risk life savings to an extant, after giving some back you will not see a "buy the dip for free $$$" crowd emerge like our idiots.

It is very possible that we have now seen a top in the Shanghai for some time to come, as rallies from this point are going to be a "get what I invested out of the market" market.

 

[a529612]

Will go up 20% by the end of this week...

 

[a529612]

Do you honestly think the Chinese government will let the stock market crash and lose face in front of the whole world when the Olympics is only a year away?

http://en.wikipedia.org/wiki/Face_(social_custom)