So whats up with this sell off 9-20-2021

[newwurldmn]

Barely anyone in Europe had heard of Lehman Brothers or Bear Stearns. The news and contagion still sent their house values down 50%. What is known in mainstream and what isn't does not matter much at all.

All those German landesbanks knew who Lehman and bear sterns were. They bought all those subprime mortgages.

 

[d08]

All the more reason for the decoupling which is long overdue. We cannot be coupled with a dictatorship that shares none of our values and philosophies of how people should be treated.

Doesn't change the fact that China does influence the world economy quite significantly. Decoupling wasn't the topic.

 

[JSOP]

Aren't Blackrock and Goldman "local"?
I read that those bonds are dollar denominated and have foreign investors holding some of them.
I am not expert but I wouldn't consider China so far away and disconnected from the rest of the world.
The west already made the mistake of doing so with the covid spread, and now it got worse than the spanish flu.
Also in 2015, China issues caused quite some volatility everywhere.

Then, how about if they let the banks take the hit, following their "common prosperity" motive?

and last, can the Fed do anything to contain an eventual global crisis caused by China?

China is not causing a global crisis, not this time at least. LOL

 

[JSOP]

Doesn't change the fact that China does influence the world economy quite significantly.

IF we let them. Hence the need for decoupling.

 

[SunTrader]

Money doesn't rest and it doesn't care about politics.

On the other hand politics care deeply about money.

Decouple this.

 

[SunTrader]

China may not bail out the company but they will have to bailout the banks. 300bn isn’t a trivial amount to lose, but it’s nothing like subprime.

Pick one: Domino theory or butterfly effect. Same result.

 

[newwurldmn]

Pick one: Domino theory or butterfly effect. Same result.

it can stay contained. Like ltcm.

 

[SunTrader]

it can stay contained. Like ltcm.

Are you certain of that.

 

[xandman]

Market did a fake move from the overnight. Regular session volume shows the real direction.

 

[Specterx]

China has near-total ability to control its markets - unlike the USA c. 2008. The government can just order banks, pension funds, SOEs and so forth to buy this or sell that (or don't sell) and the managers will do it, because if not they will be executed.

If the CCP is letting this Evergrande thing boil for a few more days, it's to show they're genuinely serious about curbing excessive leverage and property speculation. IMO it'll be ring-fenced by Friday. China had the full play planned out weeks ago, if not months ago.

For US equities, this is actually a bullish event because it gives the Fed cover to delay tightening yet again. In the meantime, fingers crossed that we get another leg down.